Bitcoin’s price defies predictions as bulls take control once again
Bitcoin's weekly gains have soared over the 25% mark.
- BTC's ongoing rally has helped spur the total market capitalisation of the crypto sector to US$2.3 trillion (AUD$3.1 trillion).
- Experts believe in order for BTC to reclaim its all-time-high levels, the digital currency needs to break past the US$56k (AUD$77k) resistance cleanly.
- Bitcoin's long-term price projection still suggests that the cryptocurrency can scale up to AUD$440k by the end of 2022.
The adage that "There's never a dull day in crypto" was on full display over the last 48 hours, as Bitcoin, the world's largest cryptocurrency by total market capitalisation, proceeded to scale up to a relative high of US$52k (AUD$71.5k), albeit briefly. At press time, BTC is trading for AUD$70,090.
With bulls seemingly back in control of Bitcoin's price action, a number of analysts have been making calls for the flagship crypto to sustain its ongoing price action – i.e. above the all-important US$50,000 threshold. In this regard, crypto pundit Michaël van de Poppe recently stated that it is only a matter of time before we see even more upward momentum given that no sudden adverse macro events are witnessed.
On a somewhat similar note, pseudonymous digital currency expert Rekt Capital opined that for over 4 months running, BTC has been seeing strong buyer support – even though the market at large may have been faced with a lot of volatility – further noting: "Following BTC's fantastic breakout move yesterday... Investors are no longer fearful towards Bitcoin. Extreme Fear precedes financial opportunity."
Market sentiment is turning "green"
To put things into perspective as to how massive this ongoing rally has been, since 29 September, Bitcoin's value has surged from AUD$56,000 to its above-said levels, representing a gain of 26.8%. As a result, a growing number of traders are hopeful that a near-term rally may help see the flagship crypto reach a price target of around US$100k (AUD$138k) by the end of 2021.
That said, David Lifchitz, managing partner and chief investment officer at ExoAlpha, believes that the 10% hike witnessed earlier this month was somewhat of a "short-squeeze" and that in order for Bitcoin to get back on track to reclaiming its previous all-time-high value, the cryptocurrency needs to cleanly break past the US$55k resistance zone. On the subject, he opined:
"At this point there are 2 possibilities — either bulls get back in the game, push BTC above US$55,000 and we can expect a reach toward the US$64,000 all-time high soon after, or they remain skeptical... at which point BTC could just go back in the middle of its 5-month-old US$40,000-$50,000 range."
Long-term projects remain solid as ever
In terms of where the market may be headed over the next year or so, pseudonymous Twitter analyst/investor Pentoshi pointed out that as per BTC's multi-year trading range data, the cryptocurrency may be looking at a price target of over US$320k (AUD$440k) sometime during 2022. Therefore, it will be interesting to see how things play out for the market as a whole over the coming few months.
Disclosure: The author owns a range of cryptocurrencies at the time of writing