Since peaking in mid-April, bitcoin has retreated and traded sideways.
But as our crypto scholar Matt McCall writes below, he sees this as a “healthy consolidation after such a strong rally.”
For the most recent Digest readers, Matt is the analyst behind Ultimate Crypto, in which he recommends top altcoins. As of this writing, the average yield of the Ultimate Crypto the portfolio is 1,298%. I should note that the portfolio launched in January 2020, so this four-digit average return happened in just around 16 months.
So what is the case for $ 100,000 bitcoin by the end of the year? Conversely, where could the prices go if the bears take control?
Today, let’s find out directly from Matt and his team.
I’ll let him go from here.
Have a nice week end,
Why Bitcoin Can Hit $ 100,000 By Year’s End
By Matt McCall
Bitcoin has been volatile lately, but this only offers an opportunity for investors who can focus on the daily price action and focus on the longer-term trajectory.
Cryptocurrencies are experiencing increasing difficulties. While many want to look at Bitcoin and discredit its value, the proof is in the charts. Just look at his performance over the past 6 to 12 months.
Its value exploded around this time, even though Bitcoin is down from its high level as of this writing. In this regard, the current decline looks more like an opportunity than a warning sign. If we take advantage of this drop and Bitcoin Is keep going to reach $ 100,000, then today’s bears will feel like fools.
While Bitcoin is under pressure, other cryptocurrencies are reaching new all-time highs. It looks like a standard rotation throughout the space and it is healthy for it to happen.
Let’s look at the big picture.
Bitcoin acceptance continues to grow
All over the world, Bitcoin continues to gain ground. This is essential for its success, because acceptance is the gateway to more access. When I say âacceptanceâ I mean a lot more than just merchants willing to accept it as a form of payment.
Instead, I mean more platforms ready to make Bitcoin transactions (with friends sending it back and forth, for example). More traders are ready to accept it. More secure brokerages willing to allow Bitcoin buying and selling, new futures available for trading, and more companies adding cryptocurrency to their balance sheets.
We have seen several companies adding billions of dollars of Bitcoin to their cash flow and short-term investments. With so much cash and interest rates so low, these companies have added Bitcoin as an alternative.
Additionally, the world’s largest auto maker (by market cap) has made it possible for customers to buy its vehicles with cryptocurrency. Now if only the biggest ecommerce site in the United States or the biggest tech company in the world (by market cap) was doing the same thing, then Bitcoin would. really see a strong dynamic.
Even without these companies, Bitcoin is on a new trajectory.
Several years ago, many people did not understand the technology. Words like âcryptocurrencyâ and âblockchainâ were a mystery to them. For many, they still are. But for millions and millions of people, they understand it now.
Of course, it helps that the access is so much easier.
It wasn’t that long ago that we only read criminals using Bitcoin and the only way to buy it was through a potentially sketchy trading platform that was in danger of being hacked and bankrupted overnight.
Now we have well-known companies doing Bitcoin transactions and well-known platforms for buying, selling and sending Bitcoin. Some of these platforms include Venmo, Cash App, and Robinhood. Heck, one of the largest cryptocurrency trading platforms recently went public and now has a market cap north of $ 55 billion!
Do you see how much history has changed in recent years? With these trends in place – companies don’t invest more than $ 1 billion in an asset if they think it’s going down – I think it’s more than possible to see Bitcoin hit $ 100,000 and do that. here the end of this year.
Long-term trend of Bitcoin
Driving Bitcoin prices is a simple supply and demand principle.
Since the basis of cryptocurrency is a finite amount of supply over time, this really leaves demand as a fluctuating calculation. Due to the way Bitcoin mining is designed, it only allows a certain amount of online sourcing. But take the offer and that also influences the price.
In January, a story was published about a man who owned around a quarter of a billion dollars in Bitcoin, but did not know his password to access those coins. This fortune has of course increased since then. However, it also highlighted the number of people facing the same (surprising) problem. It is estimated that around 20% of Bitcoin’s current supply is blocked in the same way. While this estimate was made a few months ago, consider how much that really represents.
It is in fact as if 20% of the free float of the shares is held by an insider who will not sell under any circumstances. I wouldn’t necessarily pin my bull thesis on that fact alone, but it does create an interesting dynamic for the cryptocurrency.
Basically, we’re optimistic. Technically speaking, we can thread the needle a bit more precisely. For now, Bitcoin remains below some of its major moving averages, as well as the $ 58,500- $ 60,000 area.
It is not necessarily bearish. Instead, it’s a healthy consolidation after such a strong rally. Over $ 60,000 and that could jumpstart a comeback and potentially beyond.
On the downside, a breakout of $ 52,600 is not a cause for panic. Instead, it’s a cause for patience. If we see less than $ 50,000 again, Bitcoin could retest April’s low near $ 47,000. Below that and the $ 43,000 area is possible. None of this indicates a failure. Instead, it amplifies the consolidation phase.
For long-term investors, nothing beats a better price. If that’s the option, be ready to pounce, don’t panic.
Till next time,