The year 2021 began on a very good note for Bitcoin and the majority of crypto-assets. The biggest cryptocurrency, Bitcoin exploded higher in the last 24 hours to set highs of $34,810 on Coinbase. The largest Altcoin, Ethereum (ETH) also surged to highs of $978, moving higher rapidly after passing the $750 price resistance level.
Not only Bitcoin and Ethereum, but the majority of crypto-assets are also in the green. Bitcoin Cash (BCH) and Litecoin traded at highs of $417 and $160 respectively. The biggest weekly gainers remain Dogecoin (DOGE) and Polkadot (DOT) with 143% and 84% percentage gains respectively.
In each one of Bitcoin’s bull markets, DOGE has seen strong parabolic rallies. The reason for the Dogecoin bull run could be further substantiated when it breached the key technical support against Bitcoin, 15 Satoshis which has historically been a support level in the last five years.
With Bitcoin’s recent performance, most analysts believe that BTC will perform extremely well over 2021. Michael van de Poppe stated that 2021 would demonstrate the strength of BTC’s momentum. Stating:
“This year will show the actual strength of $BTC. Good part; $ETH is also showing indications of strength as it reached a new high. A great year for crypto.”
As of this article’s writing, BTC trades for $32,730, though moved as high as $34,810 in the early hours of the day.
ETH/USD Daily ChartEthereum (ETH) trades at $937 presently, significantly up from intraday lows of $770.
The upcoming CME Ethereum futures launch in February is another major price catalyst for ETH. Given the high level of institutional demand for Bitcoin since Q1 2020, demand could also boost ETH after listing.
With the launch of ETH 2.0, analysts expect Ethereum to continue to flourish. Further stating that tales of once-hailed “Ethereum killers” such as Cardano and Polkadot may shift further towards talking about “coinciding alongside ETH.”
In the near term, a popular narrative that could keep the Bitcoin price higher is the prediction that institutions may not have bought BTC in December due to potential accounting issues. As such, some analysts say more institutions could move to Bitcoin in Q1 2021. This may likely trigger a broader BTC rally if this happens.
Bitcoin could reach $47,000 in the near term, according to the trader and technical analyst Nik Patel. Patel explained that a potential scenario for Bitcoin would be a rise to around $47,000, a pullback to $29,000, and then a moon lift.
Six-figure Bitcoin price predictions have become more common in recent months, especially as the rally has hit new all-time highs.
Thomas Lee, a co-founder of Fundstrat Global Advisors, says that Bitcoin could triple in 2021 which gives like a $100,000 price prediction when benchmarked to the recent price of $32,000. He believes that Bitcoin will be buoyed by a weakening U.S. dollar and a larger contingent of younger investors who prefer to hold Bitcoin rather than gold.
Kelvin Koh of Spartan Group however thinks that Bitcoin will exceed $100,000 in 2021. Mike Novogratz of Galaxy digital predicts that Bitcoin will hit $65,000 shortly citing the ‘network effect’.
Bloomberg analyst Michael McGlone recently predicted that Bitcoin could hit $50,000 in 2021, citing macroeconomic trends that will drive the market even further.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
