Bitcoin Price Prediction
The BTC/USD was closed at $61,422.8 after placing a high of $63,060.2 and a low of $60,733.0. BTC/USD dropped on Thursday and extended its decline amid the mixed price prediction from the JPMorgan Chase bank.
According to a renewed forecast released by JPMorgan, Bitcoin could more than double to around $146,000 per coin in the long run. However, this prediction has another side warning about bitcoin's highly volatile nature that could also send its prices sharply lower towards $35,000.
The analysts of JPMorgan wrote that digital assets have emerged as a clear winner post the pandemic as more and more retail investors join along with institutional investors like hedge funds, real money asset managers, and insurance companies. Many bitcoin and crypto market watchers and analysts have predicted that the bitcoin price will hit $100,000 before the end of 2021. This prediction is partly due to the fears of high inflation pushing investors to so-called safe-haven assets.
This week, the US Federal Reserve has decided to scale back its huge pandemic-induces quantitative easing program mainly because of concerns about inflation, as US inflation has reached a 13-year high level, and the Fed is concerned that it could be more persistent than transitory.
Last year at this time, the price of bitcoin was standing at around $15,000, and now it is hovering above $60,000. The BTC price has increased more than 300% over the last 12 months, and it has added around $2 trillion to its total value.
On Thursday, Bitcoin was down about 1%, and some investors believe that a sudden fall in Ethereum from its new all-time high level of $4643 to $4550 was also a reason behind the decline in BTC/USD. It could be due to the impact Ethereum has on the whole cryptocurrency market, being the second-largest cryptocurrency.
Additionally, the fall in bitcoin's price on Thursday could also be attributed to the behaviour of investors ahead of Friday's options expiry. Bitcoin traded in a descending channel and faced resistance at the $62,000 to $63,000 level a day before $1.15 billion in options are set to expire.
On the flip side, New York City Mayor Eric Adams said that he would take his first three pay checks in Bitcoin when he takes over City Hall in January.
Furthermore, he said that he wanted to turn NYC into a crypto-friendly city and that he wanted to explore an NYC coin similar to Miami's coin. He said that he considered the mayor of Miami his friendly competition as he took the first step to set up a so-called CityCoin cryptocurrency.
BTC/USD Intraday Technical Levels
Pivot Point: 61738.7
BTC/USD - Technical Outlook
Bitcoin is trading choppy near the 62,070 level and it’s supported above an intraday pivot point level of 61,739. The closing of candles above this level supports a buying trend in BTC/USD. On the higher side, the BTC/USD’s immediate resistance stays at the 62,744 level, and a bullish crossover above this level exposes BTC towards the 60,417 level.
On the support side, the BTC/USD’s support stays at the 59,411 level. However, the violation of this level exposes Bitcoin prices towards the 58,090 level. The MACD and RSI support a mixed bias, as their values are tossing above and below 0 and 50, respectively. However, the BTC’s upward trend dominates over 61,736 and vice versa. All the best!
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