Bitcoin price prediction: “Bitcoin can hit 75000$ in 2021”.
Let’s Discuss how and when Bitcoin can hit 75000$ in the near future.
Bitcoin Halving is a technological protocol upgrade that reduces the bitcoin mining reward to half in every 4 years to control the price inflation. Last Halving event took place in July 2016 which reduced the mining rewards from 25 BTC to 12.5 BTC. The next halving event will take place on 2 May 2020 – 92 days away from today. Bitcoin block rewards will be reduced to 6.25 BTC from 12.5 BTC after halving. Bitcoin recorded 4000% Price gain post last halving in 2016. We can expect similar price action this time around as well.
Bitcoin will implement three new privacy features through soft-forks later this year. These three new privacy-based implementations are –
According to recent news, Taproot softfork which is the biggest bitcoin technological update since SegWit has been formally proposed by Bitcoin core Team.
Bitcoin Soft-Forks will surely help the price to rise in value in the near future.
Regulated Bitcoin Trading
Bakkt launched regulated bitcoin trading instruments last year with industry-first physical contract delivery. Bakkt has been witnessing record-breaking trading volume since its launch in September last year. Bakkt also launched bitcoin options trading this month. Bakkt recorded a massive surge of trading volume by 1600% this month. Bakkt will act as an important catalyst for the next bitcoin bull run. They recently announced in World economic forum event that- they are set to launch a consumer-based application to drive mainstream bitcoin adoption this year.
The lighting network is an important pillar of the Bitcoin ecosystem which will pave down the way to mainstream adoption in the near future. Lighting network – a solution developed by Blockstream offers a layer-2 solution that it can handle 1M Transactions per second with close to zero transaction fees.
Last but not least, Bitcoin ETF is one of the major catalysts which can drive Bitcoin price to new highs in the near future. SEC has rejected multiple Bitcoin ETF applications, submitted by different companies in the last four years. Bitcoin has recently got a regulated trading environment by Bakkt after CME Group Bitcoin futures launch in 2017, also there has been a massive surge in institutional investment interest in last two years – All this indicates Bitcoin industry is building a solid case for an upcoming Bitcoin ETF approval.
We are using 2013-2017 Monthly chart here (before and after the last halving) as a study point to predict the future price action for bitcoin in 2020 and 2021.
Bitcoin had a first major bull run in 2013 and made a cycle high at 1160$ in Nov’ 2013, Price later corrected by 87% in 2014 and Bitcoin found cycle low at 150$ in January’2015 – 16 months before last bitcoin halving which took place in July’ 2016.
Bitcoin took 25 Months from its cycle low to break ALL-TIME HIGH in February 2017. Price rose from 150$ to 1200$ during that period, recorded 670% growth.
After breaking through ALL-TIME HIGH in 2017, Bitcoin took Six months to break above 4.236 FIB LEVEL which was at 4432$ at that time. Bitcoin made 300% growth in those six months.
Bitcoin price prediction – Now let’s have a look at the 2017-2019 Market.
Bitcoin ended its first major bull run in Dec’17 after price made a new all-time high at 20000$. Bitcoin witnessed a major bearish cycle next year in 2018, and the price corrected by 84% in value. Bitcoin made a cycle low at 3200$ in December 2018 – 16 months before the next halving.
Bitcoin price found a bottom/cycle low – 16 months before both halving – 2016 & 2020.
In 2015 First Major Market cycle Low was at 150$, and in 2018 Last market low was at 3200$.
During the last market cycle, Bitcoin took 25 Months to break the previous all-time high at 1160$.
As we have derived that Bitcoin had found cycle low before 16 months before both halving events. Based on data points, we can predict that Bitcoin is going to follow the previous market cycle. which concludes that Bitcoin should break above 20000$ in 25 months from last cycle low which was found in Dec’2018.
According to the chart, Bitcoin can make a new all-time high in January 2021.
Once Bitcoin will break above 20000$, Fresh Retail/Institutional funds will start entering into the market. That will be the start of a major bull trend – which will take the bitcoin price to a new high.
Bitcoin Price prediction-
Bitcoin took 6 months to break above 4.236 FIB Level in 2017. If bitcoin follows the history then bitcoin should reach above 75000$ by July next year.
Check out how bitcoin is looking on a daily timeframe.
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Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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