After hitting an all-time high on February 21st, Bitcoin price corrected, only to start an immediate recovery, and then correct again. It has been 10 days after the second recovery has started, and it simply never stopped, turning into a massive rally that has now finally taken the coin past the $60k mark.
Fundamental analysis: Bitcoin rise pushed by positive developments
The growth of Bitcoin’s price is not a surprise after everything that has happened over the past week. Bitcoin attracted a lot of attention by receiving its third ETF (Exchange-Traded Fund) in Canada, while the US still doesn’t have a single one. More than that, it was launched by Mike Novogratz’s Galaxy Digital — a highly reputable company.
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Other than that, Bitcoin also ended up attracting the attention of Spencer Schiff, Peter Schiff’s son, which attracted quite a bit of criticism from his father. Spencer allegedly sold the last of his silver stocks, deciding to go all-in on Bitcoin and make it the sole asset in his portfolio. While a risky move, it seems that this strategy paid off, as BTC went up by 27% in the last 10 days.
Institutional interest in BTC has never been higher. Goldman Sachs predicted a massive amount of crypto use in the near future, while JP Morgan, known for bashing Bitcoin over the years, recently launched its own crypto product. The consequences of the attention and interest continue to make waves, as recent reports reveal that Valkyrie hopes to launch an innovative balance sheet ETF, backed by firms exposed to BTC.
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Technical analysis: Bitcoin skyrockets over the weekend
So far, 2021 has been an extremely profitable year for Bitcoin, as well as anyone holding the coin. Of course, there were a few hiccups, and the price did see strong corrections now and again. However, at the end of it all, the coin made three all-time highs in this quarter alone.
The first one, as most likely remember, is in the first days of the year, on January 9th, when BTC first came to $40k. The coin saw a correction after that, which turned into a rally that sent BTC up to $58k around February 21st. Now, the coin hit $61.8 on March 13th, and while it did slightly drop since then, it is likely only a small correction that will be stopped by the first stronger support it meets.
According to CEX.IO, the surge started in the early hours of Saturday, March 13th, taking the coin to $60k by mid-day. After briefly being stopped by this level, BTC pushed through, continuing up to $61.8k, which is where it started struggling to go further up. Instead, it slowly started to withdraw to $60k, which now tried to keep it up. However, the support fell come Monday morning, and BTC dropped to $58k since then.
Where will Bitcoin go from here?
Bitcoin has outperformed any and all predictions over the past few months, going further and further up, and far beyond the forecasts. Our own forecast predicted that the coin would hit $50k by the end of Q1, as indicated by its stock-to-flow model. However, since then, the coin’s movement evolved and $50k is now an old record that was achieved a long time ago. Even $60k is now a reality, after the events from this weekend.
So, what is next? Obviously, BTC would have to reach 70k. We expected the coin to climb to $80k by the end of Q2. However, given that it is now much closer to this record, maybe it is possible for BTC to hit it before the end of Q1. If not, then it will likely happen somewhere in early or mid Q2. We also predicted that the coin would end the year at $90k, which may or may not happen, as many other forecasts now seem certain that BTC could hit $100k and more.