There is some disappointment in the community of crypto traders, especially beginners: after a noisy surge, bitcoin literally went to the bottom and, apparently, felt a taste for stability. Volatility has practically disappeared, and dreamers get rich quickly and easily are quite disappointed.
In fact, the cryptocurrency flagship is lurking in front of a powerful leap, according to Edgar Jansons, a leading analyst at Trust-in-btc.com (trust-in-btc.com). As a proof, he cites technical analysis data and points out the patterns of Bitcoin behavior after each halving. In his opinion, the main cryptocurrency has been testing the resistance line of the negative mega-trend that began in 2017 for several weeks. At that time, the bitcoin rate reached its maximum values of $ 20,000. BTC has the chances to break through this line in the near future, the result of this may be a sharp rise in the rate and, quite likely, the formation of a new global trend with the opposite, i.e. now positive dynamics.
According to the observations of the analytical department of Trust-in-btc, the complexity of mining has already reached its peak and amounted to 17.34 trillion hashes. This growth can be seen as a consequence of the increase in the number of miners and network performance. The situation clearly proves the groundlessness of the predictions of some pessimists, who predicted the total exodus of miners after the halving due to the decreased profitability.
Trust-in-btc specialists carefully study the research and forecasts of colleagues. For example, Weiss Crypto Ratings expects the bitcoin price to rise to $ 70,000 per unit by mid-2021. During the research, the Stock-to-Flow (S2F) model was used, which is the ratio of the total supply of an asset and its annual growth. After analyzing the data obtained, Weiss Crypto Ratings experts decided that the next 12 months will be a period of powerful growth in the „digital gold“ rate. They explain their choice of the model by an accurate reflection of the value of BTC over the entire lifetime of the cryptocurrency.
The COVID-19 pandemic could also be a significant factor in favor of bitcoin. Economic shocks immediately force investors to look for defensive assets that are least affected by the negative situation. With the continued growth of confidence in digital assets and the widespread use of blockchain technologies, “digital gold” may well become such a safe haven for investment, as an alternative to real gold. The increased demand will have a positive effect on the price and generate an even greater wave of interest from market participants.
Perhaps the level of $ 70,000 for one bitcoin looks somewhat idealistic, but it cannot be denied that the main cryptocurrency has passed the test of strength without any particular problems in the context of general economic instability. Already now we can say with confidence that the crypto market has turned out to be much more stable than its stock and commodity counterparts.
The crypto market in general has good growth potential in the near future. It is quite logical that Bitcoin will become the main driver for it.