2021 has proven once again that the coin market is unpredictable. Throughout the year, there have been predictions that the market would spike to values not yet recorded. Few however believed the values we have seen in the past months since May.
Several analysts were confident that Bitcoin would trade at values near $100,000 by December this year. Current market conditions have shown that it is possible, even though we have seen that the market is full of surprises.
In the past several hours, Bitcoin has traded above $59,000. Data feeds from exchanges that trade crypto to fiat show the effect of the recent bullish sentiments on the coin market.
Bitcoin as of Monday traded within the range of $54,600-$57,000 in a short rally that made it seem as if the coin would reestablish the stability it has exhibited prior to May. Many analysts predicted that this is a sustainable run, we have seen this to be so.
Data from Coinmarketcap did not quite reflect the spot market gains made by the coin as seen in Kraken and Coinbase. What we saw in the past 24 hours is 2.5% while the one-week gain is around 6.1%.
The spot market data all the same shows that sentiments are still high as analysts expected and that the possibility that BTC will scale the $60,000 mark on Friday is also high.
Is It Going Up Or Down
The common belief in the crypto circles is that if Bitcoin scales the $60,000 resistance, that the coin would soar to a new all time high and despite all the predictions flying around, no one knows what value that would be. What we are seeing at the moment is that there is enough volume to make that happen.
The low volume of Bitcoin has been a source of concern to many analysts despite the fact that the coin maintained reasonable stability not seen in years for the coin.
The unpredictability of Bitcoin was expressed in the belief of many analysts that the prolonged stability of the coin would herald a rally believed to be similar to the massive bull run of 2017.
Tim Draper, one of the prominent Bitcoin bulls predicted the coin would see values as high as $250,000 in 2 years. Others like Pfeffer Capital’s John Pfeffer were more conservative saying the coin will eventually trade at $90,000.
It is not certain that the predictions were based on hard data except that the coin’s history has shown that periods of lulls are usually followed by unpredictable spikes in the value of Bitcoin. So based on its antecedence, one would admit the possibility that the next BTC ATH is around the corner.
The strength of the Bitcoin market is the belief that a core number of hodlers have in the coin. This, when combined with the interest of institutional investors means that the coin is increasingly seen as a means of storage of value, just like gold.
$60,000 This Weekend
At this point, the incentive to buy is high, with the expectations that higher values are imminent. Despite the sentiments, there still are analysts that do not believe that BTC will make it above $60,000 this weekend.
A Tradingview Analyst wrote:
BTC is trading now in a descending triangle . In my opinion the price can go higher after a small pull back. Targets can be (58,000-61,000), waiting for breakout of resistance line of triangle.
Another has a contrasting opinion with the belief that Bitcoin price will retract just around $61,0000, all the way down to $45,000.
“Since I counted the move from June 22nd until today as a 5 wave impulse, that 59.6k peak is the top of my wave 5. wave 5 puts in wave (1) of a higher degree, before a 50~61.80% retracement into a wave (2).”