Bitcoin has surpassed our hopes, dreams and expectations for 2020, and we honestly can’t believe that Bitcoin is sat around $22,000 right now.
If you looked at Bitcoin 6 months ago and predicted this, everyone would have called you delusional, just like they did with us.
But that raises the question, what will 2021 look like for Bitcoin and will we see it climb higher?
Let’s make some predictions based on squiggly lines and see if we can crack the nut!
Higher or Lower – Take a Pick
Bitcoin is in a weekly ascending channel, a channel which started back in 2017. Now, you might say this is obvious, but we have seen some major dips since then and lots of bearishness.
December 2017 created the top of the channel with Bitcoin’s previous ATH, sinking to the bottom of the channel by December 2018.
After that, Bitcoin made a nice little rally to the middle of the channel in July 2019 before testing out the bottom again in March this year.
Since then, it’s all been golden for Bitcoin, flying through the middle channel level all the way to break the ATH.
If history is anything to go by, we could very well see this movement peter out and we slide back down to the middle of the channel.
By around March, we could see Bitcoin hovering in the middle of the channel at around $15,000 – which isn’t bad.
On the other hand, Bitcoin could opt to break out of the channel, meaning we’d have to chart up a whole new one based on how long it decides to spend outside of it.
If this happens, we could see Bitcoin rise up and totally blow away its current ATH and shock the world.
Can We See $50,000 for a Bitcoin?
Back in August we called $19,000 for January 2021, and it looks like we simply got the month wrong.
By the same chart we used back then, we’re looking at $50,000 per Bitcoin come the second half of 2021.
So, if the timeframe remains accelerated, we could very likely see Bitcoin worth $50,000 or more come August or September.
If that’s the case, then you heard it here first, so write it down and don’t forget!
Honestly, price predictions for 2021 are rather hard to make at the moment.
With the amount of institutions piling in with huge pools of cash, FOMO driving smaller traders and whales playing their usual games, it’s rather difficult to draw concrete conclusions.
Institutional money flowing into Bitcoin in such vast quantities will only drive the price higher, owing to basic supply/demand principles.
Also, you have to take into account the fact that these guys aren’t going to be selling on open markets willy nilly.
This could in turn cut down the volatility we currently see in Bitcoin and make it more stable.
This could be great news for those of you who are looking to use Bitcoin as a store of value, but bad for those trying to make a quick buck.
Whatever happens in 2021, we can only hope that it’s as exciting as the past few weeks have been.
Have a great festive season!