Bitcoin moved sideways during the day after a surge in selling pressure receded to the mid-range of its current levels. The first cryptocurrency by market capitalization is trading at $ 47,394 with a gain of 5.4% on the daily chart.
BTC with slight losses in the daily chart. Source: BTCUSD Tradingview
Despite the slowdown in the crypto market, sentiment has turned bullish. Most recently, Managing Director of Midas Touch Consulting Florian Grummes supported the optimism thesis sustainably.
In an interview with David at Kitco News, Grummes reiterated his prediction on Bitcoin, claiming that the cryptocurrency will go into uncharted territory in 2021.
With that in mind, he expects the price of BTC to soar above the $ 100,000 mark in the next six months as fresh capital hits the market.
Financial institutions could have greater motivations to get into BTC. Cryptocurrency is among the top performing assets of the decade, and as Grummes said, there is “a lot of pressure” on these companies to perform well on their investments.
The CEO of Midas Touch believes that Bitcoin was designed to do well in the current economic conditions. He said:
(…) Many institutions still have some catching up to do, and I think that everything was implemented in game theory by Satoshi (Nakamoto, creator of Bitcoin) and is playing out wonderfully.
In the short term, Grummes admitted that the price of BTC had seen a “good” upturn in recent weeks. The bullish sentiment generated by this price action could, however, turn into “stinginess”.
Therefore, he advised those looking for an entry to exercise caution, adding:
I wouldn’t buy here at these levels. I will wait for a pullback, I’m pretty sure it will get towards maybe $ 34,000 to $ 38,000, something around that range will be interesting again.
Bitcoin rallies against odds, en route to $ 1,000,000?
This potential pullback will provide more information about future price movements. Grummes didn’t rule out revisiting the annual opening around the $ 20,000 mark if BTC’s price fails to hold support at $ 35,000.
On the contrary, if support stays in the middle of these levels, “$ 100,000 will happen in the next 6 months”.
Regarding the factors driving bullish price action, Grummes referred to the migration of BTC miners from China. Although much of the network has been “eliminated”, the cryptocurrency continued in a demonstration, “What doesn’t kill you makes you stronger,” said the executive director.
If Bitcoin manages to climb to $ 100,000, it will continue as usual with high volatility as people FOMO enter the market. This could lead to another 50% retreat and a return to previous highs, a similar scenario to the last few months.
After all, the first cryptocurrency by market capitalization could trade at $ 1,000,000 sometime “in the next decade,” Grummes predicted. However, this will depend on the monetary policy of the central banks.
If these companies continue to “print” money, Bitcoin could absorb it to drive its price much higher. Short term owners and FOMO are the two main factors that could stand in the way of a new rally.
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