Annual Forecast for Bitcoin (2021): Price Prediction Averages at $50k

Service for copy trading. Our Algo automatically opens and closes trades.

The L2T Algo provides highly profitable signals with minimal risk.

24/7 cryptocurrency trading. While you sleep, we trade.

10 minute setup with substantial advantages. The manual is provided with the purchase.

79% Success rate. Our outcomes will excite you.

Up to 70 trades per month. There are more than 5 pairs available.

Monthly subscriptions begin at £58.

L2T Algo

TELEGRAM

RESULTS

After a multi-year bear run, Bitcoin (BTC) has finally shut the naysayers by clearing its previous all-time high at $20k and has recorded a fresh record high at $24,300 by December 2020. From the third halving event in May to dramatically dovish global economic monetary policies to combat the COVID-19-induced economic crisis, there have been several fundamental factors that supported the bull run.

We will be looking at some of the factors responsible for 2020’s bull run and 2021’s in extension and highlighting our price expectation for 2021 as the year comes to an end.

New Money

The first factor to consider is the influx of Millenials into Bitcoin compared to other assets. It got reported that Millenials and Gen Z inherited about $78 trillion of wealth, and some of that wealth has undoubtedly flown into BTC, considering it’s the preferred investment vehicle for people in these generation groups.

Limited Supply

The next factor bolstering the price of the benchmark cryptocurrency is its limited supply, especially now when demand is at an all-time high. Only 21 million Bitcoins will ever get created, and about 90% are currently in circulation. The current inflation of the Bitcoin network stands at 1.8% and will continue to decline as more Bitcoin mining reward halving occurs. As we know, Bitcoin mining is the only method through which new coins can get created.

Institutional Adoption

This year was a big year for institutional adoption and investment in Bitcoin, as corporations seek out hedging assets amid financial crisis fears. 2020 saw well-known Bitcoin critics like JPMorgan and Goldman Sachs switch their stance, while we saw significant investments/adoption from Square, PayPal, Microstrategy, MassMutual, Grayscale, One River, Paul Tudor, Bill Miller, and several others.

Bitcoin Price Outlook for 2021

Bitcoin has entered a new bull market, which can be observed through on-chain metrics, institutional investment inflows, and a booming retail adoption. That said, making a precise Bitcoin price prediction for 2021 is not an easy task. However, popular predictions average at $50,000 by 2021. The primary cryptocurrency will likely follow its historical price dynamics, but in a more subdued manner because of its maturity. Regardless of the inherent risk in cryptocurrency trading, one thing for sure is that Bitcoin will rally in 2021.

Bitcoin (BTC) Technical Outlook — 2021

BTC/USD 2021 Bias: Bullish

Supply Levels: $24,300, $25,000, and $28,000

Demand Levels: $21,000, $20,000, and $17600

Bitcoin is likely to perform on a bullish sentiment as adoption picks up. That said, we predict a revisit of the mid-$21,000 level in the coming weeks, where a rebound could be facilitated. We can see on our weekly MACD that BTC is now venturing into overbought territories like in 2017. Bitcoin will likely take a breather at this point before resuming its sharp bull rally.

The next break of the $24,300 ATH will likely get followed by an immediate clearance of the $25,000 round figure.

Considering the factors surrounding the Bitcoin market and the financial market at large, we expect a continuation of the parabolic bull run into 2021.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.