Category: xbtusd. btcusdt

A lot of new investors believe that they have missed the opportunity on bitcoin. This is simply not true. Less than 10% of the world currently know about bitcoin. That leaves over 6 billion people in the world who do not know about bitcoin. So in actuality, the investors who are getting in now who think they missed the boat are in fact, early adopters.

Related Reading | Bitcoin Price Breaks $45,000 For the First Time In Over 2 Months, Is $64,000 Possible Again?

That aside, dollar-cost averaging (DCA) has become an increasingly popular way for people to invest in the market. Dollar-cost averaging is simply the art of spreading the investment over a period of time instead of buying everything in one fell swoop. Simply put, say an investor has $1,000 to invest into BTC, instead of buying BTC worth $1,000 at once, they could choose to spread out the buying over a period of time.

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So said investor could decide that they want to buy the BTC in the span of 10 days. Buying $100 worth of BTC every day for 10 days. Or maybe buying $10 worth of BTC over 100 days. The idea behind it remains the same; spreading the investment out so the impact of volatility is reduced on said investment.

How This Would Work Out In Bitcoin

Bitcoin is at least a decade old at this point, so a lot has happened in the market. Given its tremendous growth, investors wish they had invested a large sum into the asset when it was still cheap. But what if you had put $10 every day into bitcoin for the last five years? How much would you have now?

Related Reading | Bitcoin AT $46K, Will The Market See $50K Before The Next Bear Market?

Well, if an investor had investor $10 a day for the past five years in BTC, the total amount spent would have come out a little over $18,300. But the amount in BTC would have been over $334,000. Leading to over 1,800% gains from investment. So a $300 a month investment would have come out to over $300,000 in returns after the initial investment is subtracted.

Going even farther back than five years would lead to even more gains. And going back 10 years would have seen investments grow over 100,000% in just the last decade alone.

Bitcoin Price Till Date

Bitcoins were literally worth nothing when they first came out; $0. They were being given away for free. One could mine with an old laptop and have hundreds of bitcoins in no time. But as people began to see the usefulness of the technology, the price of the asset began to soar.

Related Reading | Bitcoin Will Break Above $100,000 In Six Months, CEO Omar Chen

This lead to BTC gaining value as time went on. More people began to use the asset. But it still was not well-known until the Silk Road bust. When federal agents busted the website in which BTC was the main currency for trading, everyone wanted to know what this currency was that could not be traced.

The price mostly stayed flat following this until 2017, which is when one of the most notable bull markets took place. The price of BTC went surging from below $4,000 to $19,000 between April and December 2017, setting a new all-time high.

BTC price has grown over 400,000% since inception | Source: BTCUSD on TradingView.com

Back then, it seemed as if BTC had peaked and would crash back to zero. But four years later, BTC is still going strong, with $30,000 being viewed as the bottom for the cryptocurrency. This just goes to show how much more bitcoin can and will grow in the coming years.

Featured image from The Week, chart from TradingView.com

Bitcoin has so far enjoyed a good amount of success these past years, and so it is not surprising that investors want to continue to believe that the digital asset will continue its growth spurt. But what could very well be faith in the market might also be a denial of the obvious, which is that bitcoin has finally entered a bear market.

For about two months since bitcoin hits its $64K all-time high, the pioneer digital asset has suffered losses and corrections that have seen the price dip even further down than anticipated. About a month after setting a new price record, the digital asset saw several dips that led to the loss of over 50% of its all-time high value.

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Massive sell-offs have seen the price plummet and with institutions showing more interest in the digital asset, the price has responded negatively. There has not been any remarkable recovery since the asset had fallen below the $30,000 price point last month. And thus, with the current market trends, it is not a far stretch to say that bitcoin might have finally succumbed to the bear.

China Crackdowns On Bitcoin Mining

A major factor contributing to the recent price crashes has been the crackdown by China on mining. The country had banned mining leading to an exodus of bitcoin miners out of the mining capital out of the world. Before the crackdown, it was estimated that approximately 70% of all crypto-mining was carried out in China.

This reduced the bitcoin hash rate to dangerously low levels and thus, affecting the price and increasing panic in the market. With miners still looking for where to set up their operations, the market was very uncertain as to the future of the digital asset. And as such, investors had started getting out of the market.

BTC price struggles to recover as bears drag it down | Source: BTCUSD on TradingView.com

Panic selling has also contributed largely to the price dip. Coin holders who did not want to be “caught with their pants down” had started offloading their coins in case the price did not recover.

Whales had also taken advantage of bitcoin’s high price to offload their coins in order to buy back in when the coin dipped. Of note is Jim Cramer saying that he had sold almost all of his bitcoins and had planned to get back in when the price of the digital asset had dipped below $30,000.

What Happens From Here?

Right now, bitcoin sits at a very critical point. The next couple of weeks will most likely decide where the price of the digital asset will end up facing. Market factors right now are looking incredibly bullish as more and more FUD floods the market.

Several countries have begun crackdowns on top crypto exchange Binance, saying that the crypto exchange does not have jurisdiction or permission to operate in their countries. Sadly, this has led to doubts in investors’ minds.

Related Reading | Bloomberg Analyst Provides Blueprint Of Bitcoin Path To $100,000

China, along with the mining crackdown, had ordered all financial institutions in the country to stop allowing crypto purchase and trading. Shutting off one of the biggest crypto markets from the wider crypto space.

Following the massive FUDs coming out of the market, the Fear and Greed Index remains firmly in the extreme fear quadrant. Old and new investors alike are very wary when it comes to putting money into the market for fear of a downturn.

Bitcoin is currently trading at $31,365 and the market cap of the digital asset has now fallen below $600 billion.

Featured image from Coingape, chart from TradingView.com

Bitcoin price predictions have been a hot topic for a while now. Bloomberg Analyst, Mike McGlone believes that the price of BTC hitting $100,000 is tied to the asset following ethereum. This came in the monthly cryptocurrency newsletter sent out by Bloomberg Crypto Outlook. McGlone said this in the July version of the newsletter that was recently published.

McGlone commented on the performance of ethereum, putting it as the top market leader so far since the bull market began. Ethereum has consistently outperformed BTC in the market in recent years. But even as the coin grows in popularity, BTC continues to take the lead. Bitcoin still boasts of a market cap twice that of ethereum and it does not seem to be stopping yet.

Related Reading | I Stand By My $100,000 Bitcoin Price Target, Anthony Scaramucci

Bitcoin comes with countless merit as a decentralized coin. These add up to the reasons why $100,000 might not be an outrageous prediction for the price. Given the massive run-up this year, there is no telling where the next run-up will end up.

$100,000 Is Tame For Bitcoin

In the newsletter, McGlone highlights the potential for bitcoin. Stating that the coin $100,000 mark is still pretty tame for the flagship cryptocurrency. “Based on its history, a bottom line for BTC in 2021 is that the price advance to May 24 is a round error,” McGlone said. “The 2020 halving came amid unprecedented global fiscal and monetary stimulus, along with institutions tilting toward Bitcoin allocations.”

Continuing on, he highlighted the possibilities of BTC becoming a major value reserve for financial markets at large. Bitcoin has no doubt shown tremendous promise in its ability to be a store of value for both individuals and institutions alike.

BTC price declines as bearish sentiment intensify | Source: BTCUSD on TradingView.com

Talking on this, the Bloomberg analyst said; “ The chance that the crypto becomes the digital reserve asset and stays the course it’s charted over most of the past decade is increasingly outweighing the loss of a small portion of a portfolio.”

With BTC becoming stronger, greener (courtesy of the China mining crackdowns), and less extended, this proves to be a likely path towards $100,000. The newsletter cited that the asset’s correction in April was due to excessive energy use and this shows the strength of bitcoin, which is the world’s largest decentralized network. Confirming that the actions of China on crypto mining have only shown the benefits of BTC and now, miners have set their sights on using renewable energy for their mining operations.

Strong 2021 Foundation

Bitcoin has so far shown a strong and solid foundation in 2021. This is part of the reason why the coin price has held up so well despite losing over 50% of its value in a couple of months.

Using bitcoin’s history to date, McGlone said in the newsletter that this history points towards the digital asset moving higher in 2021 quite sharply. And the data on the charts seem to back this up.

Bitcoin’s declining supply is also a huge factor in this increase in price that looms on the charts. Bitcoin’s scarcity model makes sure that with each BTC mined, the coins are more valuable than ever. Capped at 21 million, there will be no more BTC once the last BTC is mined.

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With institutional players coming into the market and buying up large numbers of coins at a time, the time where demand will be higher than supply is fast approaching. Coins being bought and taken to holding wallets means fewer coins available for buyers and traders.

Halvings happening every four years adds to this already boosted BTC train. Halvings are when the rewards for BTC mining are cut in half. The latest halving which happened in 2020 has left bitcoin mining rewards at 6.25 per block. By the next halving in 2024, the bitcoins reward per block will be 3.125.

A combination of these factors might just be the push that BTC needs to finally break $100,000.

Featured image from Inverse, chart from TradingView.com

What’s a good reason to buy Bitcoin? Well, the fact that it’s not going to crash is a good one. Looking at the charts can tell you a lot about what you need to know about a coin.

Bitcoin is over a decade old by now. This means that there is now a bit of history to go on. One way is the movements across the charts. Rise and fall times and bull and bear markets are good indicators.

Related Reading | Bitcoin Could Fall To $10K, Louis Navellier

Given this, there is an infamous video in the Bitcoin world. The YouTube video had surfaced six years ago in 2015. Jokingly telling people why they should not buy Bitcoin. Reason being that Bitcoin had always risen exponentially and crashed subsequently. Even though the poster knows the coin will still rise before the crash. The patterns presented in this video seem consistent. Following a timeline of rising and falls.

Obviously, this video has aged beautifully. It is still a joke that is passed around the crypto space.

Bitcoin Bull And Bear Patterns

Bitcoin has always seemed more like a bubble in its movement patterns. But unlike most bubbles, it keeps coming back.

Even bull market has always followed a halving event. And halvings happen every four years.

A halving is when the reward that is gotten from mining Bitcoin blocks is cut in half. When Bitcoin first launched, you got 50 Bitcoins for each block. After the first halving in 2012, the reward was cut down to 25. Then 12.5 after the next halving in 2016. The most recent halving happened in July 2020. Right in the heart of when the bull market began.

Bitcoin maintains price above $30K | Source: BTCUSD on TradingView.com

The current reward for mining a block is now 6.25 Bitcoins. With each halving, the price of Bitcoin surges. This is due in part to there being less Bitcoin going into circulation. The scarcity model of Bitcoin is what makes it such a high-value asset. And it is why it is inflation resistant. You simply cannot make more.

The halvings mean miners are getting fewer rewards. This means that they are having to list their bitcoins at higher prices to break even. And by the next halving, miners will get 3.125. A much lower amount of rewards in just 16 years.

The bitcoins gotten would have to be listed for about $100K or so to break even and make profits. This will be a big driver in the next bull market. As it has always been in the markets.

Low Prices Does Not Equate To A Crash

Bitcoin price movements have always been erratic. Bull markets always end in a bear.

But just because the price is low at some point does not mean the asset has crashed. All assets go through periods of a downtrend.

The widely volatile nature of Bitcoin is something that scared a lot of investors away. But it is also something that draws most investors in. An asset that has the potential to move by a wide margin is an asset that people want to invest in.

Every end of a bull market has people calling it a market crash. But the market always picks back up. We have had a good number of bull markets now. And there is no reason to believe that it is going to stop now.

Related Reading | Why Bitcoin Could Still Hit $100K This Year

The current movement patterns suggest that bitcoin might have broken its normal bull and bear cycles. It’s going on a year and bitcoin is still above the previous all-time high. Prices are currently still holding steady at $30K.

If Bitcoin continues its pattern, then it will never fall below previous all-time highs. This means that Bitcoin would currently not fall below $19K. Although a more conservative number would be $15K. Since the 2017-2018 bull market ran a bit higher than anticipated.

Regardless, this would mean a lot of the crash predictions would fail.

Featured image from Nairametrics, chart from TradingView.com

Bitcoin has had a miserable couple of months since hitting a new all-time high this year. The asset recently broke the $30K resistance level last week and fell down to $28K. Before promptly recovering back up over $30K and trending upwards towards $34K.

This is a critical resistance point for bitcoin. Breaking this price could be the beginning of a bear market. Speculations are that Bitcoin could go as low as $10K if the price breaks $30K.

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But what if it never breaks that and stays upwards of $30K? Well, then Bitcoin could be in for another massive rally that could take the asset all the way up to $100K.

Bitcoin Price Movements

Historically, there has always been a big dip before Bitcoin rallies. The price usually stays within a certain price range for a period of time. Fluctuating slightly between up and down. But never making any substantial movement. After that, the ensuing rally takes the coin usually to a new all-time high.

Bitcoin has now spent 17 days trading within the $20K to $30K range. While not a high number, it is the first time that this has happened. This means that there is an air pocket below the $30K line. It explains why traders have been battling to keep the price above $30K.

Bitcoin trading in the $30K range | Source: BTCUSD on TradingView.com

If the price can hold this line for the next month, then it is likely that we will see $100K per bitcoin by year-end. Holding at a critical point means that there is still faith in the market. People are buying back in because they believe that the coin has hit its new bottom. And that might just be true.

Bitcoin has lost over 50% of its all-time high value. A number that usually spells the beginning of a bear market for an asset. But it has not been down long enough for it to be officially called a bear.

Nevertheless, if the calls that Bitcoin has hit its new bottom are true, then there is nowhere to go but up.

More Likely To Go Up Than Down

According to a Bloomberg report earlier this year, Bitcoin price will likely hit $100K in 2021. The Bloomberg Crypto Index claims that Bitcoin is in a resting bull-cap market. So while it might look like a bear market, the asset is just taking a break before its next rally.

Vinny Lingham is a well-known name in the crypto space. He is famed for having correctly predicted price movements of coins like Bitcoin, Ethereum, and FIL. Due to this, his predictions carry much weight in the market.

Lingham recently posted on Twitter that if Bitcoin could hold the $30K price range, then we could see $100K this year.

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Other users chimed in with their opinions under the tweet. With one user even predicting as high as over $150k by Christmas.

One user pointed out the lack of momentum in the market. With there not being a lot of buy pressure at $40K, driving down the price of the coin into the $30K range. But the buying pressure is high at $30K. This prevents the coin from falling below this critical threshold.

The lack of momentum in the market has surely been a cause for concern. But sometimes that is a good thing. With no momentum, investors might believe the market has hit its bottom. Then buying back in to not miss this bottom will be the momentum need to drive up the price.

Featured image from U.Today, chart from TradingView.com