Despite reaching a new high of $42k and quickly retracing to around $30k, crypto analysts and industry execs are confident that Bitcoin could reach $100k by the end of the year.
Although Bitcoin appears to be recovering and is trading at around $34,500 as of press time, there are still indications that the correction is not yet over. Data on TradingView shows that Bitcoin might form its fifth red daily candle in a row.
As per what the analysts are saying, 10T Holdings co-founder, Dan Tapiero, opines that Bitcoin is still on track to hit $100k by Q3 of 2021. His assertion is based on the stock-to-flow model which has to a large extent accurately predicted the price of Bitcoin.
Apart from Tapiero, analysts at JP Morgan had earlier suggested that Bitcoin could reach $146k in the long-term. According to Tapiero, once Bitcoin hits $100k, it might trade sideways for up to four years before another cycle begins in 2024.
Previous corrections have been in the 30-40% range. This could see Bitcoin drop to a low of $25k.
As Bitcoin continues to cool off, the Fear and Greed Index of the cryptocurrency market is also cooling off. The metric measures crypto sentiments and emotions from several sources. Bitcoin’s Fear and Greed Index is now 78, down from over 95 last month.