No matter how big or small an investor you are, or even a prospective investor, the price of Bitcoin is undoubtedly something that concerns you once in a while. The sharp rises and falls of the oldest cryptocurrency are breathtaking because of its high price denomination in dollars, euros, or other fiat currencies.
Knowing the cost of Bitcoin is crucial for formulating an investment strategy. Simply, if you’re just holding Bitcoins and not willing to trade, you also may want to know what’s the best site to buy Bitcoin in the USA and when it’s the best time to buy or sell them.
The price trend that has been observed since after the 2018 boom and bust episode, shows that the heightened price of Bitcoin is apparently a new normal. That’s why most investors don’t worry about BTC plunging all the way down below the 2020 level. Yet, they are also unsure of how long should they wait to not miss the right moment and manage to fix their profits.
Let’s look at the latest analytical inferences about the price of Bitcoin. As always, whether to buy, sell, or hold, the choice is yours.
Technical Analysis of Bitcoin Price
In general, the end of 2021 shows the market to be quite inert after the recent upward motion. According to Elliott’s wave analysis, it is fair to suggest that the fifth wave is the ending. That’s why, according to this technical analysis, a retracement of $56,000 to $58,000 might appear in the next three months’ frame.
At the beginning of 2021, coefficient one at the upper line of the Bollinger band served as a strong line, and the fractal has strong chances to repeat again. If this happens, the strong line will move to about $42,000. If sellers continue to put pressure on the market, the BTC price might correct to $38,000 where the previous trading channel’s limit is located. Experts point out that it’s not going to be so easy for bears to break that line. However, bulls are also struggling to continue the trend.
Bitcoin Price For the Rest of 2021
At the end of 2021, traders will try to fix their profits, so this tendency will inevitably affect the market. Some researchers see Bitcoin consolidating near the lower level of the trading channel. Such opportunity is presented by a triangle in the chart which can also turn into a pennant or a wedge in the nearest future. If the bulls continue with their trend at the same pace, the consolidation might also turn into another all-time high breakout.
Due to the recent sharp breakout, we’ve seen a rapid ascending trend with a new all-time high of $68,000. This upper movement can potentially grow into something like the $25,000 peak in 2018. However, the new psychological level is even stronger because if Bitcoin gets closer to $80,000, it is then dangerously close to $100,000. Thus, the oldest crypto will become the strongest magnet for new buyers and will continue its ascending motion. Then again, perhaps the active buying period will continue a bit further in 2022 because at the end of the year 2021 investors will try to fix their annual profits. So, the new breakout is possible, but we should see some period of the proper preparation before it actually happens.
Bitcoin Price Dynamics
Not everyone expected another all-time high to break into the market so soon, but on October 20, 2021, Bitcoin climbed above $68,000. That’s why right now, a lot of the old and new hodlers and traders are wondering whether they should buy or sell Bitcoin. The upward trend doesn’t seem to stop, so what decision would turn out to be the most appropriate?
History shows that even the massive drops Bitcoin can revive and continue moving with higher strength. Even after the dramatic fall in 2018, it came back and now is arguably the most expensive currency in the history of mankind. Most investors don’t want to sell it for that reason, but experts show that the dynamics of returns are not so bright when the price gets higher.
According to SOPR estimation (price sold over the price paid), profit levels for holders that entered the market earlier than 2018 lies in the realm of nearly $160.469 with an 804% profit level. Consequently, for holders who entered after 2018, the profit level would peak at $368,157.
In October 2021 Bitcoin also reached a new adoption level. The US bank, which is one of the largest banks in the world, announced new cryptocurrency custody services for fund managers. So it’s fair to suggest that, as the regulatory landscape evolves, Bitcoin will be further adapted as a hedge investment and will probably become more accepted in the world of conventional finance. Trends like this will continue to drive Bitcoin’s price forward.
Conclusion
If it seems to you that Bitcoin’s price never stands still, you’re right. However, as a trader, you are free to choose which trading style suits you best. For example, if you’re taking a long-term strategy, then daily fluctuations shouldn’t bother you. Thankfully, there are a lot of trading instruments that can benefit you, plus the crypto markets work 24/7, and you can use an opportunity to trade with trading bot algorithms.
If you’re a newbie in a crypto world or a strong believer and long-time hodler, there is also a bright side for you. It’s amazing to watch Bitcoin’s price grow. What’s even better, experts acknowledge that the bullish trend is far from over. That’s why you can sit back, relax and live your life as you always do while the bitcoins that you hold will slowly but surely climb to $250,000 and even higher. A lot of institutional big players are interested in the price growth of BTC and they have the necessary tools to keep pushing it to the moon while individual investors will benefit in the long run as well.