Bitcoin extends its rally. Experts are trying to figure out how far the price can go.
The world's flagship cryptocurrency ended the first quarter of 2021 on a positive note. On Wednesday, March 31, bitcoin approached the $60,000 mark, attempting to set another record. According to experts' estimates, the top cryptocurrency almost doubled in price within the last three months. During early trading on April 1, BTC traded at $58,799, adding 0.35% per day, and 13.57% per week.
Some experts believe that the main digital asset will growth in the second quarter of 2021. Currently, there are no conditions for a trend reversal. The majority of factors, such as positive news background, a relatively stable market situation, and investor optimism, indicate that the value of BTC will rise. In early summer, bitcoin is expected to set another all-time high followed by a 15-20% pullback. Experts suggest that the coin will reach $70,000 already in April.
There are assumptions that bitcoin will skyrocket to $100,000 in the short term. However, this is a very unrealistic target. The token is highly unlikely to climb to $100,000 by summer. At the same time, it may well reach the $70,000–$75,000 mark. Experts believe that BTC will hit the six-digit target by the end of the third quarter 2021.
In the second quarter, BTC is expected to move in the $40,000–$60,000 sideways range. Currently, there is a tendency in the market to take profit. A great number of bitcoin holders prefer to close their deals, which leads to a drop in price of the virtual asset. This tendency should lead to a slowdown of bitcoin in the second quarter of the year.
Bitcoin-gold relationship deserves special attention. Many analysts claim that BTC is the main reason for gold's decrease. The digital asset left the precious metal behind in investors' portfolios. Commodity market experts assume that gold will slow down, giving the token a head start.
According to Willie Wu, the creator of Bitcoin Forecast, the token will surpass gold in market capitalization. He says bitcoin will rise to $1 million. In fact, JPMorgan analysts agree with this point of view. They noticed that gold's money flow is going into the cryptocurrency. At the same time, the value of bitcoin in gold is still rising.
Many analysts conclude that the world's most praised cryptocurrency can rise exponentially only if there is an appropriate demand. In case of a buoyant demand for BTC among market participants ready to purchase the coin at such a high price, the digital asset may well surge to $100,000. However, the crypto market has limited possibilities amid the current situation. The trend is unlikely to change, experts say.
The material has been provided by InstaForex Company - www.instaforex.com