The start of 2021 offered a lot of hope to traders as Bitcoin went savage – crushing one resistance after another. 2020 closed with the most valued coin trading at $28,992. The first month of the current year saw most projections of $50k become more likely as BTC hit a high of $42,000.
It was all bullish over the next two months as the world’s largest cryptocurrency welcomed more investors and surged above $50,000. One of the highlights of the first quarter of the year was Elon Musk-led electric car company, Tesla revealing in a Monday SEC filing that the company has acquired $1.5 billion worth of bitcoin. Tesla says the move brings “more flexibility to further diversify and maximize returns” on its cash holdings.
The pump at the time led to many predictions of $100,000 before the end of the year. One such projection is by famous Bitcoin proponent Mike Novogratz, who was confident that the cryptocurrency will reach $100,000 by year-end.
The second quarter of the year was bearish as bitcoin fell more than 50% from its ATH but regained composure at the start of the third quarter – reigniting hopes of BTC hitting three figures. At the time of writing, the king coin facing a lot of resistance around $60k and is unable exceed after moving to the level from $58k. Is $100k still attainable?
Let’s consider two factors:
Market Fundamentals
The bull run that took place during Q1 2021 was a spillover from the previous year and was kicked off by Microstrategy continuous bet on the coin as they kept stocking up. Tesla also joins the list of corporate organizations holding bitcoin during the first three months of the current year.
We saw how important fundamentals are to the pump and dump of an asset. Unfortunately, the same driving force as was previously highlighted is not present. There are no market friendly announcements from big players in the market. This may result in a stalemate or unsustainable hikes in prices as was seen last week.
Unfortunately, China continues its crackdown on crypto – spreading FUDs throughout the market. With no bullish news big enough to combat the spread of Fear, Uncertainty and doubt, $100k may remain a pipe dream this year.
Source: Google Trends
The interest in bitcoin seems to be slowly dying as we notice a drop in its search over the last few days.
Indicators
The most valued coin looks good on the monthly chart and almost all indicators are hinting at the continuation of the uptrend. However, a closer look at the weekly reveals that traders should brace for more turbulent times.
The Moving Average Convergence Divergence (MACD) is blaring warnings as the fast line is about intercepting the slow and indicating an incoming sell off. It is important to halt this action as the last crossing took bitcoin more than three months to recover and lost more than 50% during the time.
A correction of the above mentioned factors may guarantee three figures before the year’s end.
