New all-time high for Bitcoin! How high can BTC go now in Q1 2021?
The price of Bitcoin has surpassed $34,400, reaching a new all-time high.
After BTC’s surprisingly strong rally, analysts believe that Bitcoin’s momentum will be enough to keep going up.
According to trader and technical analyst Nik Patel, Bitcoin could be heading for $47,000 in the near future. Patel explains that a Crypto Method possible scenario for Bitcoin (Buy Now? Go here for instructions) would be to rise to around $47,000, fall back to $29,000 and have another big rally. He writes:
„Potential scenario if price behaves like previous cycle, just broke through 1,618 extension into 2,618 at $3k before looking for resistance, that would be $47k now (confluence with $1trn market cap). 39% decline from there would take us back to $29k pre-moon.“
A possible bitcoin price scenario. Source: Nik Patel
Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, similarly writes that Bitcoin is not overvalued at $30,000.
The trader points out that „many people“ doubt whether Bitcoin is overvalued, and 2021 would show the strength of BTC momentum. He writes:
„Reached $30,000 while many people still argue that #Bitcoin is overvalued. It is not and this year will show the real strength of $BTC. Good part; $ETH is also showing signs of strength as it hit a new high. A great year for crypto.“
The $30,000 price level has always been an important psychological level for the bitcoin price. Hence, there have been big sell orders in the $29,900 to $30,000 range.
But: when the price of Bitcoin started to rise with large buy orders in the spot market, the sell wall eventually weakened.
This trend coincided with the mass liquidation of short contracts, which caused BTC to rise rapidly within a short time frame.
What could continue to drive BTC in 2021?
One pseudonymous analyst commented that institutional investors like Guggenheim are not willing to invest in Bitcoin, although they have shown interest. In December, Guggenheim reserved the right to buy part of Grayscale Bitcoin Trust to gain exposure to BTC.
According to the analyst, the deal with the U.S. Securities and Exchange Commission is not effective. The analyst commented:
„As BTC approaches the 30k mark, Guggenheim is still not effective with the SEC. This means they have been waiting all this time. That must be very frustrating after identifying BTC as a potential investment much deeper and then doing all the internal research. They are not alone.“
There could be other institutional investors like Guggenheim who are still waiting to get exposure to bitcoin.
If these institutions continue to enter the bitcoin market in the first quarter, this could serve as a new catalyst for BTC in the foreseeable future.