Bitcoin reaching $100,000 now looks impossible — for this year at least
PlanB, creator of the popular S2F model, conceded that it would take a miracle for BTC to scale up to $100K by 2021’s end.
- Bitcoin’s annual profit yield currently stands at 94.5%.
- Over the past week, a whopping $1.8 trillion has been drained from traditional markets.
- Some experts believe Bitcoin may resume its bullish ascent after the turn of the new year.
Bitcoin’s (BTC) price woes continue to confound investors across the globe. The world’s largest cryptocurrency by total market capitalization has remained range-bound between $46,000 and $49,000 over the last seven days. As a result, the flagship crypto is currently showcasing monthly losses of 20.5%. At press time, BTC is trading at $46,562.
Bitcoin is currently testing its yearly key moving average (MA) metric. The digital asset will need a Christmas miracle to surge and reach a target of $100K, which many experts had predicted the cryptocurrency to achieve by the turn of the new year.
As per Philip Swift, the man behind on-chain analytical data resource center Look Into Bitcoin, BTC’s one-year MA has been an extremely important historical indicator of the currency’s “bull/bear pivot levels.” BTC sitting on the trend line currently has investors a little worried. But Swift is confident it will bounce from its current levels and resume a bullish trajectory into the future.
Strong closeout for 2021 seems unlikely
Even if Bitcoin does experience a rally over the coming few days, it will have to cover incredible ground to achieve a year-end closing price in line with previous bullish expectations. In fact, even the creator of the wildly popular stock-to-flow model PlanB acknowledged recently that he does not see Bitcoin hitting his previously held target of $100K by the start of 2021. He added:
“Bitcoin needs a small miracle for a 100K Christmas. Will I ditch the S2F model if this does not happen? Nah, I actually like being at the lower bands. In fact, I published the model at the lower bands in March 2019 with BTC below 4K.”
Furthermore, the ongoing bearish mood has also had a major impact on many traditional sectors, with the stock and commodities market also showcasing no signs of the classic ‘Santa rally’ that is usually witnessed around this time of the year.
Prominent market analyst Holger Zschaepitz pointed out that over the past week, the global stock landscape has been depleted of a whopping $1.8 trillion. This development seems in line with the Federal Reserve’s imminent plans to taper its stimulus policies in the near- to mid-future.
COVID fears run amuck again
Even though stocks continue to hold a total market capitalization of $118 trillion — which is estimated to be worth 140% of the world’s cumulative GDP — experts believe that the general outlook for the crypto and traditional markets continue to remain bleak, especially as rising cases of the Omicron variant continue to spark fresh economic shutdowns across the globe.
Disclosure: The author owns a range of cryptocurrencies at the time of writing