After Bitcoin and other major cryptocurrencies fell after China took over miners and Tesla suspended payments, many members of the crypto community revised their price predictions for the end of the year.
Investors’ forecasts were divided. For example, PlanB, a popular analyst in the crypto community sees Bitcoin growth prospects up to $ 100 thousand by the end of the year. Predicted 2018 BTC Correction Analyst Peter Brandt – Opposite pointed out risks of further depreciation of the digital asset.
Investors’ opinions on the near-term prospects for other cryptocurrencies are also divided. The BeInCrypto editorial team decided to ask the experts how they see the future of the two capitalization leaders – Bitcoin and Ethereum.
Bitcoin forecasts for the end of 2021 from experts
He shared his first forecast with us Leading strategist at EXANTE Janis Kivkulis…
The expert noted that the fall of bitcoin after a protracted consolidation looks like the most likely scenario… He drew attention to the fact that the “spring” of the markets (price fluctuations) has compressed as much as possible, so that an exit in one direction or another is likely in the coming days or even hours.
Yanis Kivkulis noted that Bitcoin price fluctuations in the past two months fit well into a triangle with frequent rebounds from levels near $ 31,500 and resumption of sales from increasingly lower values. A month ago, the expert noted, the rebound lost its strength at an altitude of $ 40 thousand.A couple of weeks ago, the price reversed at levels above $ 36 thousand, and recently sellers prevailed at $ 34 thousand.
Bitcoin, in his opinion, today is supported by the belief of enthusiasts that a drop in price by half of the peak levels makes it attractive to buy. However, a downward trend from ever lower levels is a significant sell signal.
Given the hype specifics of cryptocurrencies (they are often bought with a view to rapid growth), protracted consolidation disappoints speculators, Janis Kivkulis is sure. He noted that Bitcoin trading volumes have plummeted in the past two months. Indicators decreased four times in comparison with what was at the peak values of the price.
“Investors expect prices to be clearly lower, while speculators are curtailing their activity,” noted Janis Kivkulis.
Among the technical signals on the side of the “bears”, the fall of bitcoin below its 200-day average at the end of last month and an unsuccessful attempt to return above this level at the beginning of July. The expert also noted that the “cross of death” is formed on the bitcoin chart – the intersection of the 50-day average (an indicator that reflects the average cryptocurrency value over 50 days) from top to bottom with the 200-day average (an indicator that reflects the average cryptocurrency value over 200 days).
The expert noted that a failure under the support line by $ 31,500 can drive the price below $ 30,000 in a matter of hours. This is exactly what happened on July 20.
According to Janis Kivkulis, similar falls open the way to $ 23,300 – from here, bitcoin gathered strength for a breakthrough before Christmas.
After falling on July 20, 2021, BTC managed to regain altitude. The cryptocurrency has grown amid positive statements about the coin from Tesla founder Elon Musk at the B-Word conference. The next time, the absence of positive impulses can provoke a further decline in the bitcoin rate.
“It cannot be ruled out that overclocking the price will close the gap in the area of $ 18 thousand. In general, such a reversal could be a repetition of the“ crypto winter 2018 ”. It would open up an opportunity for a commensurate price collapse with a “bottom” near $ 10,000, which would allow the rally to be zeroed from October 2020, ”summed up Janis Kivkulis.
More Bitcoin forecasts for 2021 are in our material.
Etherum, as noted by Janis Kivkulis, has come under pressure since July 7, 2021. The behavior of the cryptocurrency, according to the expert, suggests that its dynamics have returned to the mainstream of the common market and its flagship – bitcoin.
“It is also interesting that ETH has returned to levels near $ 1900 – a former significant area of resistance. There is a “head and shoulders” pattern on the chart, which forms a significant potential for a decline to $ 600-700 in case the market surrenders the current line of defense, ”noted Janis Kivkulis.
The expert noted that in the behavior of both cryptocurrencies, one can trace the prerequisites for an extremely strong decline in the event of a failure under the current levels. He also drew attention to the lull in the cryptocurrency market, which, in his opinion, resembles the consolidation of bears’ forces before a strong blow.
“This situation should not be regarded as stable behavior of the crypto market amid a sell-off. In recent months, we have seen more than once how quickly a calm can give way to a loud collapse, ”summed up Janis Kivkulis.
Also, he shared his opinion on the prospects for the further movement of the cryptocurrency rate with the editors of BeInCrypto co-founder of the LAZM data center Roman Nekrasov.
He is sure that the situation on the crypto market is extremely unstable. The situation is affected by the overheating of the market in the spring, the lack of institutional money, the ban on mining in China, the global rhetoric about the need to tighten regulation of cryptocurrencies and stablecoins.
“I fully admit that bitcoin may drop to $ 15 thousand under the confluence of a number of negative circumstances: the impossibility of Chinese enterprises to quickly transfer their computers to the chosen jurisdiction, the introduction of strict requirements for transactions with stablecoins and their issuers, investigations against Tether iFinex and Binance and so on, ”noted Roman Nekrasov.
The expert is confident that by the end of the year, Bitcoin, at best, will be able to return to the $ 45,000- $ 50,000 range… In his opinion, it is capable of breaking through the level of $ 100 thousand BTC six months before the next halving in 2024 (in the fall of 2023). At the same time, the expert does not exclude that Bitcoin will reach the indicated level earlier.
“For Ethereum in general, the situation is highly dependent on technical updates within ETH 2.0, as well as on the development of the DeFi sphere. I think if everything goes according to the scenario planned by the developers, then ETH will exceed $ 4000- $ 5000 by the end of this year, “summed up Roman Nekrasov.
More Ethereum forecasts for 2021 are in our material.
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