Who Else Thinks Bitcoin Is More Likely To See $25K Before Reaching $100K?
Is it really different this time?
|Sylvain Saurel||Mar 1||1|
The month of February 2021 seems to be ending differently from the way it started. Since the beginning of the month, the good news had created a general feeling of enthusiasm around Bitcoin. This enthusiasm finally turned into euphoria when Bitcoin surpassed the $1 trillion market cap for the first time in its history.
Two days after crossing this historic milestone, the price of Bitcoin reached an All-Time High (ATH) close to $60K at $58.3K.
Above $50K, Bitcoin became for the first time in its history closer to $100K than to zero. Bitcoin's opponents were forced to admit defeat, at least temporarily. Of course, they had not said their last word.
With March coming up, the current correction could become more pronounced
The correction that we have been witnessing since then seems to give new energy to all those opponents, who are taking advantage of it to get out of the woods. From Janet Yellen to Charlie Munger to Peter Schiff, everyone is taking advantage of seeing the price of Bitcoin fall back to around $45K to say that the whole thing will end badly.
When you've been in the world of Bitcoin for a while, you end up feeling like you're living the same life as the hero of the movie "Groundhog Day".
Those opponents of Bitcoin will be disappointed again when Bitcoin reaches $100K. This will happen by the end of 2021. This is my certainty. In the meantime, a great question deserves to be asked:
Is it more likely that the price of Bitcoin will see again $25K before it reaches $100K?
This is a real question as it seems that the coming month of March could be much bloodier for Bitcoin than the last few days we've known. Historically, March is the bloodiest month for Bitcoin. Massive corrections have taken place several times already.
Some people think it's different this time, but is it really the case?
History never repeats itself, but it often rhymes, as Mark Twain explained so well.
Why should it be different this time? Some will tell you that it is different because the demand from institutional investors is huge and big companies like Tesla and MicroStrategy are now in Bitcoin. However, we have to face reality.
On January 4th, the price of Bitcoin was $28.3K. On February 21, 2021, it was $58.3K. Such a rapid increase is not sustainable without a big correction. A healthy correction as we say in the Bitcoin world. The drop in the Bitcoin price of just over 20% that we have been witnessing since February 22, 2021, may not be enough to clean up the market before a restart of the Bull Run.
The big corrections to which Bitcoin has accustomed us in the past are rather in the order of 40 to 50%. And sometimes even more so.
This would mean seeing a return of the Bitcoin price below $30K. Nothing is certain as always with the price of Bitcoin in the short term. Nevertheless, it is a possibility that we cannot rule out given Bitcoin's history.
Very big players want to enter into the Bitcoin world but at a discounted price
When the price of Bitcoin rises faster than it should, as it has done since the beginning of 2021, many people come to buy Bitcoin without really understanding how Bitcoin works. These people don't understand that Bitcoin is an accumulation game, but they also don't understand that Bitcoin is there to give you back the power.
If these people understood this, they would not sell their BTC at a loss against the U.S. dollar, which is just weak money. Those who buy BTC to protect the fruits of their labor from the ravages of monetary inflation in a way that is resistant to censorship are not selling. They continue to accumulate more and more.
That is why it is said that the market must be purged of weak hands after this type of increase of more than 100% in the price of Bitcoin.
Seeing Bitcoin having a 50% correction from its $58.3K ATH would not surprise me. This could very well happen during March 2021. Tesla's entry into the world of Bitcoin has probably given ideas to many other companies. Big hedge funds will enter Bitcoin sooner or later.
However, they will not want to do so before a big correction. Buying Bitcoin from an ATH is not something they are used to doing. On the other hand, if the price of Bitcoin drops below $30K, all these players would see this as a perfect entry point.
The criticism and FUD (Fear, Uncertainty, and Doubt) messages that have been coming out over the last few days show attempts to manipulate the price of Bitcoin to reinforce this drop.
The train of the Bitcoin revolution is on the move. Nothing can stop it. However, all these new passengers want to get on board at a lower price. Therefore, they will do everything possible to amplify the current correction.
That's why I think that the price of Bitcoin is probably more likely to fall below $30K again so that it can resume its climb back up to $100K.
If the price of Bitcoin does fall back below $30K, don't be surprised to see a flood of purchases from large companies, hedge funds, and even banks. For all these new passengers, this will be the perfect time to enter the Bitcoin revolution at a discounted price.
Bitcoin will then be able to resume its forward march to the next station: the $100K station. With top-notch passengers on board, the price of Bitcoin will become much more sustainable.
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