Does Bitcoin’s new support level foretell $100k by New Year?
Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist, tweeted on September 16, 2021. He predicts a “strong increase in 2021, maybe to $100,000, we believe.” Bitcoin appeared to be well on its way to reclaiming its former all-time highs. This was noticeable after it scaled up to a relative high of over $53,000. However, the past week’s events caused the world’s largest cryptocurrency by total market capitalization to drop over 13% of its value. While a single BTC is currently selling near $45,800.
The financial behemoth anticipates that Bitcoin will hit $100,000 by “late 2021 or early 2022,” accompanied by a considerable surge in the value of Ether. Indeed, the research team concluded that Ether is “structurally” valued at a year-end price range of $26,000 to $35,000; however, for this to happen, BTC must scale up to $175,000.
Ben Casein, Head of Research and Strategy at AAX, is unsure whether a year-end estimate of $100,000 per BTC is still achievable. Last Tuesday’s sell-off, in his opinion, was a classic “sell the news” move. He believes a sophisticated “bear trap” was at work. According to Tommy Schreiner, Senior Research Analyst at crypto data source TheTIE, Bitcoin has a reasonable possibility of reaching $100,000 before the end of 2021. Schreiner also noted that, despite global economic turbulence, the United States Federal Reserve had shown no slowing the money printer. He feels it is a positive indicator for somewhat riskier assets such as cryptocurrencies.
Furthermore, he stated that layer-one solutions like Solana, Terra, Avalanche, Polygon, and Fantom have continued to bring new money into the global digital asset ecosystem. They may help boost BTC’s value.
Doubts for $100,000
Lennix Lai, Financial Markets Director at OKEx, says that Bitcoin’s future is bright. But he has doubts if it will surely end the year at $100,000. Lai admitted that if 1% of the world’s total wealth were to flow into Bitcoin in the near-to-mid term, a price objective of $100,000 per BTC could be readily accomplished.
Similarly, Igneus Terrenus, Head of Communications at By bit, believes that the approval of a Bitcoin exchange-traded fund (ETF) in the United States is the most compelling justification for Bitcoin’s price exceeding $100,000 this year.
Bitcoin’s technicals appear to be solid
Despite recent volatility, the fundamentals of Bitcoin appear to be pretty robust at the moment. Charles Edwards, the creator of Hash Ribbons, claimed that the flagship cryptocurrency would remain in the green. Bitcoin can manage this as long as it stays above the crucial $42,000 resistance zone. Late last year, Edwards forecasted that Bitcoin’s price would reach between $100,000 and $200,000 by the end of 2021. He stated that he would be “shocked” if Bitcoin did not reach $50,000 by 2021. This prediction came true after the currency touched an all-time high of $63,000 earlier this year.
We can see that in the years after the halvings in 2012 and 2016, the value of BTC climbed by 55x and 15x. We are, respectively, signaling that a rise above $100,000 is still possible.
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