Cryptocurrencies are experiencing their third major rally these days. The Bitcoin has again broken its previous historic peak to reach $ 66,931. In the case of Ethereum, the price has exceeded the previous record by three dollars, reaching $ 4,365. Buying near all-time highs is usually not a good idea with cryptocurrencies, but the future outlook for cryptocurrencies indicates otherwise.
We all laughed when John McAfee said he would eat his, ahem, parts, if bitcoin didn’t hit $ 100,000 before the end of 2019. Although he was wrong in the year, the prediction is not far from being fulfilled, and all indications are that It will do so in 2022 . In 2021 we could see figures of $ 80,000 with new highs, but it seems that we will have to wait until 2022 to see 100,000.
The 100,000 dollars, getting closer and closer
The truth is that the cryptocurrency boom continues to amaze us, and the price predictions for 2022 not only speak of $ 100,000, but some prediction websites even name prices of up to $ 200,000.
Those prices will come with increasing volatility, as indicated by the CEO of Binance himself.
Expect very high volatility in #crypto over the next few months.
– CZ 🔶 Binance (@cz_binance) October 21, 2021
The rise of Bitcoin these days has had to do with the launch of the Bitcoin Exchange Trade Funds (ETF) in the United States, which is nothing more than the first investment fund exchange-traded for Bitcoin. This fund implies that whoever invests in them, earns money if the bitcoin goes up, and loses if the bitcoin goes down, but without actually buying the cryptocurrency directly.
Therefore, it is not a question of whether Bitcoin will hit $ 100,000 , but when it will . The cryptocurrency has quite stable supports, and the fall of the last months has been almost completely compensated, and everything indicates that the cryptocurrency will break highs again before the end of the year.
Bloomberg Intelligence commodity expert Mike McGlone nonetheless said that the price of Bitcoin will hit $ 100,000 this year . The next prediction was from mid-September, and since then Bitcoin has risen $ 16,000.
Can Bitcoin Reach $ 100,000 in 2021? Five Charts Show Potential – Past #Bitcoin trading trends and the crypto’s declining supply vs. mainstream adoption suggest a significant advance in 2021, potentially to $ 100,000, we believe. pic.twitter.com/0tH7PS7QEI
– Mike McGlone (@ mikemcglone11) September 16, 2021
Be careful with supports and resistances
Therefore, it is a good time to monitor the price of cryptocurrencies and see if the supports are reached to see when it is a good idea to enter. We currently have resistance at $ 56,300, $ 51,100 and $ 47,000, so it is important to see if those prices are touched. The greatest resistance is found around $ 30,000, so if we buy now, we could lose half of what we invested.
If you are going to buy bitcoins, it is better to place purchase orders at the price that you think is most convenient and wait to see if it gets to touch them. Buying at the market is usually worse because we get carried away by the FOMO if something is going up, which takes us away from the optimal purchase price . We will never be able to buy right at the minimum price , but if we get closer, the better. Just as it is good to look at the supports, the resistances must also be taken into account. When an asset breaks its peak value, it is usually not uncommon for it to rally 10 or 20%, as there are hardly any previous sell orders to be filled.
