• Tue. Jun 18th, 2024

What will be the price of Bitcoin in 2021?

The price of Bitcoin in 2021 will reach $30,000 or more at an all-time high. However, there will be several drawdowns that will occur as well. It is safe to say that the price of Bitcoin in 2021 will range between $20,000 and around $30,000.

The reasons for this are simple.

AI Trading Robot

Firstly, the cryptospace is undergoing an evolution. The drivers of the current price surge will be the leaders of the next exponential price leap for the cryptocurrency.

There will be a lot of profit-taking for those who have been HODLing cryptocurrencies since 2017.

We are also going to see the inclusion of stronger regulations as per cryptocurrencies and other digital assets.

These and more will be the factors that will influence the price of Bitcoin in 2021.

AI Trading Robot

Institutions Will Determine the Price of Bitcoin in 2021

The price of Bitcoin in 2021 will be determined by institutions rather than the retail markets.

As such, the price swings will still exist but this time they will be huge. Institutions have already officially adopted Bitcoin and the Altcoins as digital assets.

The next thing on the menu is for these assets to receive widespread acclaim by other institutional players.

The though may not happen as cryptocurrencies and digital assets are viewed as niche products within the general context of financial products.

The perception may change over time.

For now, though, the price of Bitcoin in 2021 will be influenced to some degree by how institutional players buy or sell digital assets and their derivatives.


The Cryptocurrency Markets will Experience Improved Liquidity

The presence of new institutional players will improve the liquidity of cryptocurrency markets.

These new entrants into the cryptospace have a lot of cash and other assets at their disposal.

The price of Bitcoin in 2021 will have a significant cushion unlike in other years.

As events occur to influence a drop in Bitcoin prices, the new liquidity levels within the cryptospace will enable Bitcoin price levels to reach equilibrium faster.

It will also affect price momentum.

Price momentum will push Bitcoin prices to new levels.

The new lows will be previous highs.


Bitcoin Prices in 2021 will Have Higher Lows

As for the price of Bitcoin in 2021, there will be higher lows than in previous years.

The higher liquidity levels in the Bitcoin market will enable this market phenomenon.

The higher lows also have many consequences for the market players in the cryptospace.

Miners will charge higher mining fees.

Transaction confirmation fees will also rise.

Due to high demand though, there will be a massive adoption of the excess hashing power that exists within the Bitcoin global ecosystem.

It will also become expensive for predatory traders.

They will have to seek out other markets.

The higher lows will also create upward pressure on the price of Bitcoin in 2021.

the price of Bitcoin in 2021

Many Pre-2017 HODLers will take Profit in 2021

We live in an instant generation.

Everybody wants something instant.

This will force many of the pre-2017 HODLers to forsake their positions and take profits in 2021.

The price of Bitcoin in 2021 during this profit-taking period will be extremely unstable.

We will see lots of bearish tendencies during this period.

Profit-taking itself will start to occur around the $26,000 price level.

There will be a price correction back to the current $23,000 levels or even lower depending on other factors at play at the time.

However, once prices have corrected they break through the $26,000 resistance.

From there, prices will then be tested again at $30,000.

the price of Bitcoin in 2021


Bitcoin Prices May Cross the $30,000 Price Level Briefly

The price of Bitcoin in 2021 may cross the $30,000 price level.

Let’s face it.

The price predictions of $50,000 or more may still come.

But, one hurdle standing in the way of such outlandish projections is the adoption of cryptocurrencies.

Because of the choppy adoption process, we shall be seeing the price of Bitcoin in 2021 skirt around the $30,000 price level.

Prices may also top the $30,000 price level because of the overheating uptrend.

The price reversals at this level will be either due to the cooling-off period or a minor trend reversal for the rebound from profit-taking.

If other sudden major moves occur, then yes, we will see prices top $30,00 and reach new levels that we haven’t seen yet.

the price of Bitcoin in 2021

2021 will be Consolidation Year for Bitcoin

Something most people don’t realize is that 2021 will be a consolidation year for the world’s first cryptocurrency.

We shall be seeing the cryptospace crystallize and stabilize in the coming year.

In 2017, not everybody knew about the cryptospace and its underlying technologies.

Now, the big guns know enough to think that the asset is in itself a big deal.

Hence the massive capital flows.

The price of Bitcoin will be rather stable as compared to preceding years because this time, everybody is now figuring out how to integrate cryptocurrencies and their technologies.

We are also going to see the rise of new Altcoins with new capabilities.

The interoperability of blockchains and distributed ledgers will also be a thing in the coming year.

2021 will be the beginning of interesting times!

AI Trading Robot

Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.