BITCOIN will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand [versus] supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap,” noted Bloomberg Crypto in a monthly report.
The demand-supply mechanics are currently skewed bullish, as only 900 new coins mined each day compared with 1,800 in 2017, and institutional participation is increasing.
While the odds appear stacked in favor of the bulls, the cryptocurrency remains vulnerable to a March-like panic sell-off in the global equity markets, according to Bloomberg analysts. However, they do not see prices falling below $10,000.
“The $10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017,” the report says.
Bitcoin fell sharply to $3,867 in March as global stock markets collapsed on fears of coronavirus-led recession, boosting demand for cash. Prices quickly recovered to $10,000 ahead of the May 11 reward halving.
The top cryptocurrency by market value reached a record high of $19,920 earlier this week, surpassing the previous all-time high of $19,783 reached in December 2017. Prices have more than doubled in the past three months alone.
