Bitcoin forecast for the end of October 2021
Bitcoin has been growing, as expected, since October, a generally successful month for the entire sector. For a price of $65,000, we find both technical and psychological resistance that is difficult to overcome. In our opinion, the channel remains relatively wide, even though BTC has demonstrated incredible strength – even resisting hints of a global crisis.
The general conditions of the economy will also have an important impact on Bitcoin, which is now essential for finance in all respects. The great bear trap that everyone is afraid of is inflation. You will say, not bad for BTC, because it is an anti-inflationary financial asset. This is not entirely accurate. Recently, BTC’s reaction to this has been very uncertain.
Whales keep accumulating
Long swings, similar to a pendulum, allowed the so-called whales, or accounts, which have a large number of Bitcoins in their portfolios, to accumulate even more coins and, consequently, even more energy. Can the accumulation with a return above this channel finally end? We’ll see. However, at the moment, whales continue to buy. According to some statistics, almost 100,000 BTC has been accumulated at this stage.
Moving averages for 1 week
Bitcoin moving averages are usually useful for understanding how BTC will move in the next few hours. However, there is no certainty that in such a tense moment they will become a useful key to reading. To complete the picture, we present here moving averages with daily coefficients, which are most often used by traders.
The situation with Bitcoin in week 1 signals a widespread signal of the possibility that the king of cryptocurrencies has indeed returned to a bull run. However, these data need to be compared with other types of technical analysis.
Bitcoin Technical Indicators for 1 Week
Moving averages are a very useful tool, but they still need to be compared with what we have ahead in terms of technical indicators.
As for the oscillators, the situation seems to be trending towards a Bitcoin revival for at least a week. However, remember that even the results of this type of analysis can easily change, and therefore you need to continue to monitor this situation, constantly updating it.
Possible scenarios on BTC
According to Coinmarketrate.com Bitcoin is the most important cryptocurrency in the world, both in terms of capitalization and because it can pull the entire sector up or down. This is something that must be taken into account in the financial markets. Leaving behind a very short-term analysis, we will have the opportunity to consider a broader context, useful for those who decide to enter the market in the medium and long term.
Bitcoin is Here to Stay: words pleasing to the ear. Although many outside analysts continue to talk about a bubble, we do not believe that this scenario is really possible. Bitcoin was in the center of a major correction that halved its value, and for such an unstable asset class, this is more than normal. But to think that we will return to the price levels of 2018 or even 2019 is something that, at least for the levels that are available now, would seem completely inappropriate.
Specific interest of institutional investors
The interest of institutional investors is obvious. Especially those who have not yet arrived on the crypto market with a lot of capital, but are opening up to the possibility that Bitcoin has become part of their investment portfolios, especially in the issue of high risk. In the interests of institutional investors are the purchases of military-technical cooperation companies such as Tesla, which currently owns more than $ 1 billion in Bitcoins, as well as MicroStrategy, which has more than four of them.
Everything suggests that with the normalization of the service life of an asset, more and more companies will include it in the balance sheet, with all that entails in terms of increasing demand, and therefore price growth.
Movements on the State front
It all started with El Salvador declaring Bitcoin a legal tender. In the coming months, many more Central and South American countries will decide to take such a step. It seems that this is about to begin on the African continent. Of course, there will be very fierce resistance, in which the International Monetary Fund and the World Bank have already participated, since they are tied to the US dollar.
However, this is a cascading effect that is almost impossible to contain, and that it will bear fruit in the foreseeable future. Of course, it will take time for BTC to be openly accepted, even by the so-called economically developed states.
The world of altcoins
Thus, with the ability to move the value of most cryptocurrencies both up and down, Bitcoin was, and remains, the flagship coin. For bitcoiners, it doesn’t matter at all, but those who focus on altcoins, whether they want to or not, also focus on the Bitcoin world without exception.
Only few of the altcoins can be considered poorly correlated, but in times of great volatility, all these differences are always eventually smoothed out.
Bitcoin’s Historical Trend
Bitcoin is a cryptocurrency that has been around for eleven years, and it needs to be viewed from a historical perspective to understand its potential. We are very far from the initial stages when a large number of coins could be bought for $1. Bitcoin has come a long way since that phase, and today it stands for one crypto asset just an astronomical figure.
However, this was not a constant bull run. Indeed, throughout its history, Bitcoin has faced many obstacles that have reduced its value by up to 80% in a short time. These cycles have several explanations that also go beyond the classical cycles that we are used to seeing on other types of assets.
Weekly chart for BTC. Source: Coinmarketrate.com
Gold vs Bitcoin
Many associate Bitcoin with a store of value, or a kind of digital representation of gold, with the difference that Bitcoin has a limited maximum number of tokens that will ever be produced, while gold continues to be mined. By the way, without a fixed and predictable quantity that is placed on the market. And in general, hardly anyone knows how much gold is stored in reserves and vaults.
Gold and Bitcoin in parallel? It’s hard to see a correlation.
In this chart, we compare the trends of gold and Bitcoin in terms of growth. And it immediately becomes obvious that in fact the correlation is still quite weak. Since we base all types of analysis on numbers and factual data, it is still difficult for us to believe that these two assets can be considered as parallel.
Bitcoin Continues to be Extremely Unstable
After the incredible growth that began at the end of 2020 – and after Bitcoin also suffered (albeit to a lesser extent than stocks) from the crisis caused by COVID 19, it has recovered significantly, returning to prices close to the beginning of the calendar year.
The daily schedule of the BTC. Source: Coinmarketrate.com
At the time of writing these lines, the king of cryptocurrencies was at $63,927, adding 2.9% in 24 hours.
Bitcoin, like the whole world of cryptocurrencies, is not for the faint of heart. Whoever enters the market, if they want to reduce risk, will have to consider BTC as a long, very long investment.
Conclusion
Bitcoin’s forecasts are very difficult to read in the short term, while in the medium and long term it is certainly more stable. But, we divide the forecast into time horizons in order to understand how a trader should behave now.
- In the short term: volatility
According to what all the main analysts predict, there may be a moment of prolonged price fluctuations, that is, movements within the same channel, which, if read correctly, open up many opportunities for fruitful short-term trading. This is $62 – $65,000 channel.
- In the long run: BTC is a great asset to invest in
And this, at least, is in accordance with the target prices and forecasts on which analysts have reached the greatest consensus. The consensus is around extremely interesting and much higher price levels than the current ones. In other words, if the expected conditions do occur, those who enter the Bitcoin market today will buy it at heavily discounted prices. And therefore with excellent chances to reap interesting fruits in the future.