Are strong technicals enough to bring Bitcoin price to $100K in 2021?

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After scaling up to a comparative precocious of astir $53,000 conscionable implicit 2 weeks ago, it seemed arsenic though Bitcoin (BTC) was good connected its mode to reclaiming its erstwhile all-time highs. However, the bid of events that unfolded implicit the past week has seen the world’s largest cryptocurrency by full marketplace capitalization suffer astir 13% of its value, with a azygous BTC presently trading adjacent $45,800.

That said, the aforementioned volatility seems to person near Standard Chartered’s cryptocurrency probe portion wholly unfazed, with the analysts referring to Bitcoin’s astir caller plunge arsenic being a “false dip” portion reiterating that a year-end people of $100,000 per BTC is inactive rather achievable for the flagship cryptocurrency.

The banking behemoth believes that Bitcoin volition person deed $100,000 by “late 2021 oregon aboriginal 2022,” a determination that volition beryllium accompanied by a immense spike successful the worth of Ether (ETH) arsenic well. In fact, the probe squad pointed out that Ether is “structurally” valued astatine a year-end terms constituent betwixt $26,000 and $35,000, however, successful bid for that to happen, BTC indispensable standard up to $175,000. 

Contributing factors

To get a amended thought of whether a year-end projection of $100,000 per BTC is inactive feasible, Cointelegraph reached retired to Ben Caselin, caput of probe and strategy astatine cryptocurrency speech AAX. In his view, past Tuesday’s sell-off was a classical “sell the news” move, adding that helium believes that an elaborate “bear trap” whitethorn person been astatine play. Caselin told Cointelegraph:

“I bash expect $100K is inactive successful play for Bitcoin this twelvemonth — if anything, $100K would beryllium underwhelming. In fact, if we travel PlanB’s stock-to-flow, we are inactive moving successful the little band, tracing ‘worst-case-scenario prices,’ which stood astatine $47K past month, $43K successful September, and nary little than $135K astatine the extremity of the year.”

He added that erstwhile it comes to Bitcoin, determination is much worth successful looking astatine on-chain information alternatively than terms technicals alone, arsenic it allows users to summation a much high-resolution presumption of what’s really happening crossed the web successful real-time. 

Similarly, Tommy Schreiner, elder probe expert astatine crypto information supplier TheTIE, told Cointelegraph that determination is inactive a steadfast accidental that Bitcoin tin scope $100,000 by the adjacent of 2021:

“$100K seems arsenic ridiculous possibly arsenic $50K did past year, but determination are factors successful play that don’t wholly out-rule that scenario. The caller pullback was mostly a de-levering of the market, arsenic a ample percent of leveraged unfastened involvement got wiped retired and efficaciously reset each the bullish traders who were going YOLO.”

Schreiner further emphasized that contempt each the economical turmoil crossed the globe, the United States Federal Reserve has shown nary signs of stopping the wealth printer, thing helium believes to beryllium a bully motion for comparatively riskier assets specified arsenic cryptocurrencies. 

Furthermore, helium highlighted that layer-one solutions specified arsenic Solana, Terra, Avalanche, Polygon and Fantom person continued to bring successful caller wealth into the planetary integer plus ecosystem successful caller months, thing that whitethorn besides assistance spur BTC’s value. 

“NFTs [nonfungible tokens] are burning a immense magnitude of Ethereum each day, contempt pricing retired a batch of retail users. So if $100K seems ridiculous, possibly look astatine however acold crypto has travel successful conscionable a year,” Schreiner said.

Nick Spanos, co-founder of Zap Protocol, believes that El Salvador’s caller acceptance of Bitcoin arsenic ineligible tender has the integer currency good connected its mode to hitting the $100,000 people by the extremity of the year. “Ether is besides looking to deed $10,000 by then,” helium said.

Some doubts for $100,000

Lennix Lai, fiscal markets manager astatine cryptocurrency speech OKEx, believes that portion Bitcoin’s aboriginal seems poised for bully things, that doesn’t needfully mean the premier integer currency volition adjacent retired the twelvemonth astatine $100,000. He told Cointelegraph:

“I deliberation we would spot a short-term correction considering the loom connected upcoming tapering from the U.S. Bitcoin is inactive precise delicate to the planetary wealth supply. Yet astatine the aforesaid time, the cryptocurrency is becoming a morganatic alternate plus people and everyone is looking for definite portions of plus allocation.” 

Lai did concede that if successful the near-to-mid aboriginal adjacent if 1% of the world’s full wealthiness were to travel into Bitcoin, past a terms people of $100,000 per BTC could rather easy beryllium attained.

Similarly, for Igneus Terrenus, caput of communications astatine cryptocurrency speech Bybit, the astir compelling lawsuit for Bitcoin’s terms reaching $100,000 this twelvemonth remains the support of a Bitcoin exchange-traded money (ETF) successful the United States, which, successful his opinion, volition assistance unfastened up the BTC marketplace to caller participants, specified arsenic status funds and wealthiness absorption products. 

“SEC punted the [BTC ETF] determination from Sept. 8 down to its caller day of Nov. 14 — inactive wrong the calendar twelvemonth of 2021. Anecdotal grounds shows that astir each wealthiness managers are asked by their clients astir Bitcoin exposure. An ETF whitethorn conscionable beryllium the close conveyance for this to happen,” helium told Cointelegraph. 

Bitcoin’s technicals look strong 

In spite of caller volatility, Bitcoin’s fundamentals look to beryllium rather beardown astatine the moment. In this regard, Charles Edwards, creator of 1 of the world’s astir well-known Bitcoin metrics, Hash Ribbons, precocious claimed that arsenic agelong arsenic the flagship cryptocurrency is capable to hover supra its all-important $42,000 absorption zone, it volition proceed to stay successful the green.

Late past year, Edwards predicted that by the extremity of 2021, Bitcoin could beryllium looking astatine a terms people of betwixt $100,000 and $200,000. He said helium would beryllium “shocked” if Bitcoin didn’t deed $50,000 successful 2021, a projection that came existent aft the currency reached its all-time precocious of $63,000 earlier this year.

In Edward’s view, 1 of the astir important differences betwixt this existent rally and erstwhile ones is the comparatively debased level of retail involvement that has been witnessed crossed the board. In fact, to scope a caller all-time precocious this year, helium believes Bitcoin volition person to walk a sizeable magnitude of clip supra the $50,000 range. “I deliberation that would reengage much retail interest,” helium said.

Even though $100,000 whitethorn not beryllium successful the cards for Edwards, helium believes the marketplace is dilatory but surely closing successful connected the terms point. However, successful bid for that to hap anytime successful the coming 3 to 4 months, helium believes that either renewed retail involvement needs to beryllium generated oregon a important fig of purchases from starring S&P 500 companies similar Tesla request to instrumentality place.

Looking ahead

When compared with erstwhile events, the monetary effects of the 2020 halving person been rather tame up until now, with Bitcoin having lone experienced a 4x summation successful its value. In comparison, we tin spot that successful the years pursuing the 2012 and 2016 halvings, BTC’s worth roseate by 55x and 15x, respectively, thereby suggesting that a determination to $100,000 could inactive beryllium possible.

It volition beryllium absorbing to spot however the coming fewer days play retired for the cryptocurrency marketplace astatine large, particularly arsenic regulators each implicit the satellite proceed to tighten their grips connected this still-nascent industry.

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