Image Source: Goodreturns

Bitcoin should be atleast at $55k suggests supply shock metric

Bitcoin is trading nearly at $52k after the last night pump that broke through the resistance at $50,500. And now the supply shock metric has been telling that Bitcoin should be atleast at $55k. This means it is undervalued right now, and in a day or two, we could move past that price. Do note that this is a very conservative price point, and we will probably go much higher than this.

Bitcoin has overcome $50,500

After a long wait, Bitcoin has finally broken through the $50,500 barrier and has confirmed that it’s moving up. This was the last stage for the continuation of the bull market, and it seems we are due for a double top pattern in 2021. There is going to be huge FOMO as the price of Bitcoin has conquered the mental support of $50k. And the paper hands that sold at $30k are going to get in. This is why it is always recommended to hold no matter what. If you are unable to do so, then there is no point in getting into this market.

Bitcoin should be atleast at $55k
Image source: Cryptoglobe

Now we are going to see an insane demand, and those who haven’t sold till now are not expected to do so in the near term as well. This means we could expect a huge supply shortage really soon. It is also what the S2F model predicts, suggesting that Bitcoin could reach $100k by the end of the year.

What to do now?

See nothing is guaranteed in crypto, we all are looking at $100k as the year on target but we might get to $200k. At the same time, the price could crash again and we might be back below $40k or even $30k again. The point is when you get into crypto do you have the ability to hold. If you have panic sold at $30k then there is no harm in getting in now. An increase in price will give you profits and a dip will give you opportunities to make more profits.

When I started my journey in crypto, I always wished that the prices kept going up. But after the crash, as I applied DCA and increased my holdings, I realised that they are big opportunities.

What are your thoughts on the supply metric suggesting that Bitcoin should be atleast at $55k? And do you think we will reach $100k by the end of the year? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.

Also Read: Almost $200 billion is locked in DeFi platforms suggests data