Pantera Capital’s Big Bitcoin Price Prediction Playing Out Exactly As Forecast, Says Dan Morehead
Pantera Capital founder and CEO Dan Morehead is doubling down on his bullish 2021 Bitcoin prediction, asserting that the leading crypto asset is still right on track to hit $115,000 by August 2021.
In Pantera’s latest Blockchain Letter, Morehead says that Bitcoin’s price movements, although delayed by a week, are playing out exactly as forecast based on the stock-to-flow projection published last year.
“Bitcoin is exactly on track with the forecast we made in our April letter. Our analysis was based on comparing the reduction in the supply/flow of bitcoin relative to the outstanding stock – at the time of each halving – and the subsequent impact on price.”
According to the projections set by Pantera, Bitcoin’s price lagged by as much as 15 weeks in July 2020. In December, Bitcoin began to catch up with Pantera’s projections and by mid-January, the leading cryptocurrency hit the ninth milestone in Pantera’s forecast after climbing to $38,000.
For the next date, February 15th, 2021, Pantera predicts Bitcoin will trade at $45,268.
Pantera makes its projections based on the Bitcoin halving cycle. Historically, Morehead says Bitcoin prices have surged after each halving, which happens every four years.
After the first halving in 2012, Bitcoin’s supply dwindled by a little over 15% in a span of 446 days as block rewards were halved from 50 to 25 BTC. Subsequently, Bitcoin witnessed a rally of 9,212%.
Following the 2016 halving, Bitcoin rallied by 2,910%.
If Bitcoin follows Pantera’s predicted trajectory, Morehead expects BTC to hit its peak in August 2021 with a price of $115,212, rising over 1,091% after the May 2020 halving.
“I’m not saying I’d bet our life savings that’s definitely going to happen, but I think it’s possible, and we’re right on pace to do that.”
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Bitcoin Struggles Whereas Many Altcoins Proceed To Surge
Bitcoin worth struggled to settle above the USD 38,000 resistance and began a contemporary decline. BTC broke the USD 37,200 assist and it’s at present (05:00 UTC) buying and selling properly under USD 36,500. If there’s a clear shut under USD 34,200, the worth would possibly decline 5%-8% within the close to time period.
However, there have been regular strikes in most main altcoins. ETH/USD is holding the primary USD 1,150 assist stage, but in addition dealing with hurdles close to USD 1,250. XRP/USD is once more sliding in the direction of the USD 0.265 and USD 0.255 assist ranges.
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After one other failure close to USD 38,000, bitcoin worth began a contemporary decline. BTC settled under the USD 37,200 and USD 36,500 assist ranges. It even broke the USD 35,500 assist stage and the bulls appear to be struggling to guard the USD 35,000 assist stage.
The principle breakdown assist is now forming close to the USD 34,200 stage. A transparent shut under USD 34,200 and USD 34,000 could presumably lead the worth additional decrease within the coming periods. Conversely, a break above USD 36,500 and USD 37,200 is a should this week for a contemporary rally.
Ethereum worth is holding beneficial properties above the USD 1,150 and USD 1,165 assist ranges. ETH is caught in a spread above USD 1,150 and under USD 1,250. If the bulls acquire energy for a push above USD 1,250 and USD 1,265, there are possibilities of a powerful rally above USD 1,300.
On the draw back, the important thing weekly assist sits at USD 1,150. A draw back break under USD 1,150 might open the doorways for a bigger decline in the direction of USD 1,050 or USD 1,000.
Bitcoin money worth is down 2% and it’s now buying and selling under the USD 485 assist. If BCH clears the USD 465 assist, it might revisit the USD 450 stage. Any extra losses would possibly open the doorways for a push in the direction of the USD 400 assist. On the upside, an preliminary resistance is close to the USD 485 stage, however the primary breakout resistance continues to be close to the USD 500 stage.
Litecoin (LTC) struggled on greater than two events to remain above USD 150. LTC is now buying and selling properly under USD 150 and it’s testing the USD 140 stage. A right away assist is at USD 136, under which the worth might decline in the direction of the USD 128 and USD 125 assist ranges.
XRP worth didn’t settle above USD 0.300 and began a contemporary decline. The worth traded under the USD 0.280 assist and it looks as if it might revisit the USD 0.265 assist. The important thing weekly and month-to-month assist is at USD 0.255, under which the bulls would possibly face sturdy promoting stress.
Up to now few hours, a number of altcoins gained over 8%, together with ZEN, OMG, WAVES, GRT, CRV, OCEAN, IOST, KSM, and REN. Out of those, ZEN rallied 30% and it’s up over 60% within the final seven days.
General, bitcoin worth is exhibiting a number of damaging indicators under USD 36,500 and USD 37,200. If BTC breaks the USD 34,200 assist, there’s a danger of a bigger correction within the subsequent few days.
Author: By admin
Bitcoin overtakes tech as most crowded trade, says Bank of America survey
“Long Bitcoin” has once again flipped “long tech” as the most crowded trade based on Bank of America’s recent fund manager survey.
Published on January 18, 2021
In another throwback to the 2017 bull market, a major United States bank fund manager survey, or FMS, has put Bitcoin at the pinnacle of positive investor sentiment.
According to Reuters, 36% of respondents identified a long Bitcoin bet as the most crowded trade ahead of long tech in a Jan. 2021 survey from Bank of America.
January’s report marks the first time that ‘long tech’ has not been number one in BofA’s fund manager survey since Oct. 2019. The result also marks a steady increase in positive investor sentiment for BTC seeing as Bitcoin was third on the list back in Dec. 2020.
Indeed, the Dec. 2020 edition showcased a healthy appetite for risk assets with the majority of asset managers dropping cash for the first time since 2013.
However, tech stocks are currently experiencing significant struggles in the market with both the Nasdaq Composite and the Dow Jones down by 150 and 90 basis points respectively, in the second week of January.
Back in 2017, long Bitcoin was chosen as the most crowded trade in BofA’s and Merrill Lynch’s global fund manager survey.
In another survey reported by Reuters, this time from Deutsche Bank, respondents characterized Bitcoin as being in a bubble. According to the report, more than half of the investors in the poll predicted a 50% price decline for Bitcoin before the end of 2021.
Bitcoin is currently showing signs of consolidation above the $36,000 mark which could be a catalyst for another attempt at its all-time high above $40,000. According to JP Morgan analysts, BTC needs to re-take $40,000 or risk another 30% correction.
at the time of writing, Bitcoin is up more than 26% year-to-date despite being about $4,000 shy of its ATH price achieved back on Jan. 8.
Bitcoin News: What A Difference A Week Can Make – 18 January 2021
Bitcoin News: What A Difference A Week Can Make
While bitcoin is not a stablecoin, it has benefited from the ongoing worldwide discussion into mainstream use, and has seen its own price rise in turn. This renewed confidence came not just from the general public, but previous bitcoin investors as well, as data suggests that top 100 richest bitcoin addresses bought 17 times more BTC than sold in the last 30 days.
Only 8 out of the 100 addresses sold 20,333 Bitcoin worth $660,59 million during the period. The remaining 56% of the addresses did not record any change.
Crypto Parrot researchers explained the possible reason for the activities by the top 100 rich addresses. According to the research report: “While more whales are adding to their assets, it seems fewer whales are looking to sell-off. The 56 addresses did not move their bitcoins. Bitcoin’s price was increasing due to high demand, and there was relatively little bitcoin available to buy. Furthermore, the lack of movement in these wallets indicates they might belong to investors who are betting on further price growth in the future.”
Meanwhile, stories emerged of citizens desperately trying to claw back their lost bitcoin, from a man that only had two password attempts left before his $220 million stash would self-destruct. And another that is desperately searching local landfill sites for the hard drive he mistakenly threw away which holds approximately $280 million in bitcoin.
Shortly before bitcoin began to head south after breaking the $40,000 barrier, CEO of Luno, Marcus Swanepoel, predicted that while bitcoin has previously surged in times of economic struggle, “Even the most bullish of bitcoin advocates could not have foreseen such a meteoric rise in price in such a short space of time. If history has taught us anything, it’s that a surge of price in bitcoin is normally followed by a small pullback before it gears up again for the next price cycle.”
That was certainly what happened on Monday 11th January, just a few days after passing through the $40,000 barrier. And while it did climb again later in the week, another tumble has seen the price come crashing down with a 20% swing.
Anatoly Crachilov, co-Founder and CEO of Nickel Digital, commented: “Bitcoin often exhibits large upside swings that tend to be followed by corrections. This is normal behaviour for new technology in the early stage of its adoption curve. The price action for such assets is never meant to be a straight line. Only professional investors with a long-term view on the underlying technology should have exposure to this asset class. They also need high-risk tolerance levels and, importantly, never lose sight of the forest for the trees.”
In the UK, it wasn’t long before an FCA notice highlighted the dangers of investments in volatile currencies such as bitcoin, however, did investors take any notice? Throughout 2020, cryptocurrencies gained the attention of large investment firms this year, part of the reason behind bitcoin’s gains however, these big names can cause price drops of their own.
Myron Jobson, Personal Finance Campaigner, interactive investor, said: “There is no denying that cryptocurrency is gaining more mainstream attention thanks to the stratospheric rise of bitcoin, the first and best-known cryptocurrency, in recent history. Argo Blockchain, a publicly-traded blockchain technology company focused on large-scale cryptocurrency mining, was the most bought investment on interactive investor since the start this year (to 8 January 2021).”
With Philippe Bekhazi, CEO of XBTO Group, adding. “Most institutional investors seem to be running similar algos to accumulate bitcoin on dips. Some of them are also looking beyond bitcoin into ethereum and some even further into other crypto assets. These new crypto owners will take some profits which will have a significant downward impact on the price of bitcoin and other crypto assets, so investors should be mindful of that impact.”
Founder and CEO of Glint, Jason Cozens, warns that the financial system punishes savers and forces consumers into risky investments, such as Bitcoin, to maintain their purchasing power.
He said, “The FCA’s warning to UK consumers over the risk of Bitcoin’s volatility suggests there is real concern from the financial establishment over crypto entering the mainstream. The financial system has punished savers for years, with historically low-interest rates and the insidious creep of inflation hitting consumers’ purchasing power and forcing many to risk everything through speculative investments, such as bitcoin and the stock market, just to ensure that their wealth remains at its current level. Bitcoin’s rise is symptomatic of this.”
“Consumers want an alternative to ensure that their finances work for them. Currently, bitcoin appears to be the in-vogue option, but it requires considerable financial knowledge and a huge amount of time with almost constant attention needed to buy and sell at the correct time and avoid hitting returns. Whilst not offering the risky, overnight gains of bitcoin, gold is once again demonstrating its considerable value as the ultimate safe haven, with steady long-term increases to mitigate against risky investments and almost non-existent interest on cash savings.”
While Yang Li, chief growth officer for Ziglu, also warns that the currency has been a victim of its own success, he suggests that there are other issues than investors. He said, “Covid-19 has had a big effect on manufacturing the hardware needed for those installing and maintaining bitcoin mining rigs. Miners had been entering the market seeing that it’s very profitable to mine Bitcoin but all of a sudden there are supply chain issues so there is apprehension about whether it’s the right time to invest in mining. There is pull-back, people are waiting to see where this all-time high settles before they commit further.
“One reason the value has not bounced back immediately is that retail investors are apprehensive after regulators across the world, including the Financial Conduct Authority, issued a warning about the volatility and unregulated nature of cryptocurrencies. So we are seeing a small blip but it is still up 22 percent from January this year.”
Finally, research by Nickel Digital highlights several factors that make bitcoin attractive to institutional and other professional investors, which bode well for its long-term prospects. These include:
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Author: Added by: danyagames2007
Home Bitcoin CoinShares to Launch a Bitcoin ETP on SIX Swiss Exchange
Bitcoin News Roundup for Jan. 18, 2021
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This episode is sponsored by Nexo.io.
Prices fell by 6% in the seven days to Jan. 17, a weekly fall not seen since the first week of September.
The investment giant predicts CBDCs will continue gaining steam, although a “launch among Western countries seems unlikely to occur anytime soon.”
Commentators and analysts who say bitcoin is in a “bubble” show they don’t understand what the term means.
The machines were said to have been consuming 95 megawatts per hour of electricity at a reduced rate.