Bitcoin has been on a wild ride for the past few days. Bulls sent the cryptocurrency to a new all-time high of around $ 19,800 yesterday before losing strength and succumbing to bears.
From here, the price of the cryptocurrency had dropped sharply, leading to lows of $ 18,200. The buying pressure here was quite strong and triggered an almost immediate recovery.
It soared as high as $ 19,400 this morning before facing an influx of selling pressure that slowed its rise and resulted in a slight regression. Nonetheless, what appeared to be a “V-shaped” recovery from these lows was recorded.
Where it goes next likely depends largely on whether buyers can firmly reclaim $ 19,000 and set that price as a long-term low. If it gets stuck down here, it could experience lingering weakness for the days and weeks to come.
Despite this short-term turmoil, an economic model is still forecasting an incredibly bullish year for the benchmark cryptocurrency.
The on-chain analyst who developed the metrics on which this model is based, concluded in a recent tweet that $ 200,000 per bitcoin is a “conservative” forecast by the end of 2021 and that it will continue to rise could.
Bitcoin recovers from overnight lows, but bulls are losing momentum
At the time of writing, Bitcoin is trading a little over 4% at its current price of $ 18,920. This is a remarkable rebound from the overnight lows of $ 18,200 set after the recent $ 19,800 rejection.
From here, the crypto soared to $ 19,400 before the bulls lost their steam and the price of the crypto fell below $ 19,000.
Where it evolves next likely depends entirely on its ongoing response to this key level.
The economic model predicts a 10-fold increase in BTC prices in 2021
A respected on-chain analyst recently stated in a tweet that one of its economic models predicts that Bitcoin will experience massive momentum.
He is now pointing to one of his economic models that predicts Bitcoin could trade between $ 200,000 and $ 300,000 by the end of 2021.
“Views on 2021: My top model, who is proposing USD 200,000 per BTC by the end of 2021, looks conservative, USD 300,000 is out of the question. The current market paid an average of $ 7,456 for its coins. “
Image Courtesy of Willy Woo.
That prediction seems a bit of a stretch, but if Bitcoin surpasses its all-time highs and sees price movement similar to that seen in previous pricing battles, a six-digit BTC could be just around the corner.
Featured image from Unsplash. Price data from TradingView.