Will strong technical indicators be enough to bring Bitcoin price to $ 100,000 by the end of the year?

After climbing to a relative high of around $ 53,000 two weeks ago, Bitcoin appears to be on track to regain its former all-time high (ATH). However, a number of events that happened over the past week have resulted in Bitcoin losing nearly 13% of its value, which is currently trading at $ 46,762 at press time.

Bitcoin price chart | Source: Tradingview

Even so, the aforementioned volatility is unlikely to change the crypto research plans of Standard Chartered – a UK multinational banking and finance company – with analysts suggesting that Bitcoin’s recent decline was a “false slump”.

Standard Chartered expects Bitcoin to hit $ 100,000 by “late 2021 or early 2022,” a move that will be accompanied by an increase in the value of ether. In fact, the team has shown that ether is “structurally” worth between $ 26,000 and $ 35,000 at the end of the year, but that requires Bitcoin to be worth up to $ 175,000, a 1,000 percent increase over current levels.

Factors Driving Bitcoin’s $ 100,000 Goal

To better understand whether Bitcoin’s $ 100,000 goal is still feasible by the end of the year. Ben Caselin, Head of Research and Strategy at Exchange AAX, sees last Tuesday’s sell-off as a classic “sell the truth” and adds that a “bear trap” “may have complications”.

“I expect Bitcoin to be worth $ 100,000 this year. In fact, if we follow PlanB’s stock-to-flow (S2F) model, Bitcoin is still in the lower band, after 0 “worst case price” at $ 47,000 last month, to $ 43,000 in September and no less than $ 135,000 at the end of the year. “

Caselin added that Bitcoin has more value when looking at on-chain data, giving users a better real-time view of what is really going on on the network.

Tommy Schreiner, Senior Research Fellow at crypto data provider TheTIE, claims that Bitcoin still has a chance of $ 100,000 by the end of the year:

“$ 100,000 may seem as absurd as $ 50,000 last year, but there are factors in the game that don’t completely rule out that scenario. The recent pullback has been largely leveraged in the market as a large amount of leveraged open interests (OI) have been killed and any bullish traders who enter in a bullish fashion have been effectively restored. Eat the whole thing or fall into space.

Schreiner further emphasized that despite all the economic uncertainties around the world, the US Federal Reserve (Fed) showed no signs of stopping money printing, which he believes is a good sign for futures assets, against risks such as cryptocurrencies.

Additionally, Schreiner emphasized that Layer 1 solutions such as Solana, Terra, Avalanche, Polygon and Fantom have continued to bring new money to the global digital asset ecosystem in recent months and have helped accelerate the global digital asset ecosystem’s value .

“NFT burns large amounts of ether every day, even though many retail users are eliminated. So if the $ 100,000 target seems absurd, you may need to look at how far Bitcoin has come in the last year. “

Nick Spanos, co-founder of Zap Protocol, believes El Salvador’s adoption of Bitcoin as a legal currency could indicate that it is well on its way to hitting $ 100,000 by the end of the year.

“Ether also wanted to reach $ 10,000 at the time.”

Some doubts about Bitcoin’s $ 100,000 level

Lennix Lai, director of financial markets at OKEx exchange, believes that while the future of Bitcoin is forever in sight, that doesn’t necessarily mean it will close at $ 100,000 this year.

“I think we’ll see a short-term correction given the possibility of tapering from the US. Bitcoin is still very sensitive to the global money supply. However, crypto is becoming a legal alternative and everyone is choosing it when it comes to asset allocation. “

Lai has admitted that the target price of $ 100,000 is easy to achieve if only 1% of total global assets are invested in Bitcoin in the short term.

For Igneus Terrenus, head of communications at the Bybit exchange, the approval of an Exchange Traded Fund (ETF) in the USA is the most convincing case that the Bitcoin price will reach US $ 100,000 this year. It will help expand the Bitcoin market to new audiences like pension funds and wealth management products.

“The SEC has postponed its decision on a Bitcoin ETF from September 8th to November 14th – still in 2021. There is evidence that clients are asking most asset managers about their exposure to Bitcoin. . An ETF could be the right vehicle. “

Technical factors

Despite the recent volatility, Bitcoin fundamentals appear to be quite strong right now. Charles Edwards, the creator of one of the most famous Bitcoin indices in the world, Hash Ribbons, recently stated that as long as Bitcoin can move above the USD 42,000 resistance area, it will continue its trend.

Late last year, Edwards suspect that Bitcoin could be heading for a price target of $ 100,000 to $ 200,000 by the end of 2021. He said he would be “shocked” if Bitcoin didn’t hit $ 50,000 by 2021, a prediction that came true after Bitcoin hit an ATH of $ 63,000 earlier a year.

In his view, one of the main differences between the current rally and previous rallies is the relatively low level of interest from private investors around the world. In his opinion, to hit a new ATH this year, Bitcoin will have to spend a lot of time above the $ 50,000 mark.

“I think this will generate more interest in retail.”

While Edwards is not aiming at $ 100,000, he believes the market is slowly but surely closing there. However, for this to happen anytime for the next three to four months, Bitcoin must attract continued retail interest or a significant amount of purchases from leading S&P 500 companies like Tesla.

What happened to Bitcoin?

The impact of the halving in 2020 has resulted in Bitcoin quadrupling. Compare that to previous events like the 2012 and 2016 halves, Bitcoin’s value has increased 55 and 15 times, respectively, suggesting that it is still possible to hit $ 100,000.

It will be interesting to see how the next few days play out for the crypto market as a whole, especially as regulators around the world tighten their control over the industry even further.

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Mr. Teacher

According to Cointelegraph

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