Bitcoin has finally broken $50,500 and is trading at $51,700 right now. This price level was the last resistance to BTC’s bull run, at least according to technical analysis and previous patterns. So, now things look pretty bullish for the cryptocurrency, and analysts predict big targets. According to them, Bitcoin’s path to $100k has very low resistance. And this makes ETH’s movement to $5k also very likely. So, yes, we might be looking at a double top pattern in 2021, after all.
The new price targets
Bloomberg’s senior commodity strategist Mike McGlone has given a very bullish price target for Bitcoin and Ethereum. As the markets have recovered again, he thinks that Bitcoin could move to $100k really soon. His views align with the S2F model that also predicts $100k BTC by the end of the year. For those who don’t know, the S2F model operates on a supply and demand basis, which makes it a really powerful tool to predict BTC’s price. This is because one of the primary USPs of Bitcoin is its limited supply.
One thing that I disagree with with this price target is the $5,000 one for Ethereum. If Bitcoin is going to double from here, then ETH has hands down a 2-3x opportunity on the table. Anything below that is very unlikely.
Why are we seeing the price increase?
Coming back to what Mike had to say about BTC and ETH. He said that any portfolio without them (BTC and ETH) is starting to look weak. Mike also explained why the price of ETH had increased drastically in the past few days. The lowering supply due to burning and the increasing demand is the reason for those huge green candles we saw. In fact, the adoption and burning are complementary to each other as more the transactions more the burning of tokens.
On the other hand, the reason for Bitcoin’s price target is the halving. Mike pointed out that after halving, we saw a 55x increase in 2013 and 15x in 2017. But till now, BTC has only increased by 4x, which is rather small. This is why a move to $100k seems likely and also could be the end of this bull run.
What are your thoughts on the price target given by Mike McGlone? And do you think Bitcoin’s path to $100k will be easy? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.