The price of Bitcoin has stagnated since its crypto rally in December through the New Year. In early January, the king of the crypto market peaked at around $ 42,000, an impressive number that was double its previous high in 2017. And now what will happen to the crypto market?
Trying to predict the future crypto of Bitcoin
It is worth noting that, the wild rally in the price of Bitcoin in 2020 was mainly driven by governments that printed an impressive amount of money to combat the COVID-19 crisis.
In fact, as many know, the US dollar weakened with inflation, while the price of BTC soared. People discovered trading at home with brokers offering attractive commission-free services and with it, the crypto market.
In the end all you need is a phone and an internet connection to trade.
Therefore, for 2021, the price trend continues and more money printing is anticipated. And as proof of that, US President-elect Joe Biden unveiled his $ 1.9 trillion COVID-19 relief proposal last week, which could further boost the prices of the leading crypto.
Bitcoin Stalls, Now What?
However, surprisingly, Biden’s announcement generated a very weak bullish response from the Bitcoin crypto market so far.
At time of writing, BTCUSD continues to trade sideways at $ 34,437, which after deviating 20% from the last high, is still up 17% this year to date.
Still, as people used their checks to invest in crypto, big investors and Hollywood stars investing in Bitcoins further strengthened the enthusiasm. Even billionaire Paul Tudor considers Bitcoin the main hedge against inflation.
Likewise, JP Morgan analysts have equated Bitcoin as “digital gold” and said its price could eventually reach $ 146,000. However, in the short term, if Bitcoin cannot regain the $ 40,000 level, an ‘investor exodus’ could occur.
Therefore, those looking to profit will likely cash in and feed the recent correction, weakening Bitcoin’s momentum signals until the end of March.
SimpleFX gives you the support you need
The macro view and on-chain analysis for Bitcoin gives a “wildly optimistic” impression to analysts like Jeff Ross of Vailshire.
Furthermore, BTCUSD is also well above the 50, 100 and 200 day SMAs, showing a favorable tone. According to the Bitcoin Bull PlanB, the strong performance and new trading volumes could spark a run to the 48K level.
Do you want to do crypto trading with Bitcoin? Benefit from the rise and fall of Bitcoin prices using SimpleFX. It is the easiest and most versatile app for trading cryptocurrencies alongside popular stocks, forex, precious metals, and more!
In fact, you can even trade 20% off spreads on February 8-15 and get a refund of up to $ 250. No minimum deposit or commission required. With crypto leverage up to 1: 500, you can trade any amount. Sign up with your email today!