Bitcoin price will close 2021 at $70K-75K, says portfolio strategist as BTC drops below $60K

bitcoin btc price looks to top $75,000 by 2021 end
“Bitcoin will close 2021 at $70K-75K, says portfolio strategist as BTC drops below $60K” Image by BeatingBetting.co.uk via Flickr.

Key Bitcoin Takeaways

  • Bitcoin price dropped below $60,000 and retested the support at $58,000.
  • The benchmark crypto-asset reached oversold levels in the latest correction.
  • Loose monetary policy triggered inflation could boost the BTC/USD pair to $75,000 by 2021 end.
  • The top cryptocurrency network’s Taproot upgrade will also catalyze increased adoption and a substantial price rally.

JAIPUR (CoinChapter.com) – Bitcoin began the week on a bearish note. But according to a portfolio strategist, the top crypto asset will quickly flip the situation by topping $75,000 by year-end.

The benchmark cryptocurrency’s ongoing consolidation between the $58,000 – $68,000 range has persisted for almost a month. A loss of bullish confidence in BTC triggered selloffs and subsequent accumulation. However, the $58,000 support has held strong.

Related: Bitcoin consolidating within $58K-$68K — will Taproot unleash BTC bulls?

Striking Resemblance In Setups

The ongoing phase is reminiscent of Bitcoin’s momentum during August-September when the benchmark digital asset corrected upwards only to drop down to the $44,000 support. Relative strength index (RSI) trends gave off the similarities during both BTC market phases.

All this while, the 50-day moving average (MA) wave has guided the BTC/USD pair’s direction. A rally to a new all-time high followed September’s correction. The same looks to repeat as Bitcoin tapped oversold levels on the RSI meter.

Bitcoin is ready to rally again
Bitcoin is ready to rally again. Source: TradingView.com

Bitcoin Price Is Headed Towards $75,000

The above Bitcoin technical setup falls in line with Logan Kane’s analysis. In his latest piece, the Texas-based portfolio strategist predicted the top cryptocurrency to end the year on a $75,000 note. In addition, Mr. Kane identified the latest Taproot upgrade and the ultra-loose monetary policy followed by the US Federal Reserve as the main catalysts to spark the next bull run.

Related: Bitcoin price eyes explosion to $80K in two weeks, per a 2017 bull run setup

Lightning Network, Smart Contracts, And More

Logan explained how Taproot had amplified the Bitcoin network by improving user privacy, reducing transaction fees. As a result, the Lightning Network, which functions as a layer two solution, also received a boost, all while paving the way for the advent of smart contracts.

“Bitcoin smart contracts could have applications for gambling, insurance, real estate transactions, inheritances, and more. I see particular potential for smart contracts easing the risks of doing business in emerging markets that lack the rule of law that the United States and other Western countries have.”

said Mr. Kane
 Related:  More opportunities for Bitcoin as the new Taproot upgrade enables smart contracts, privacy features

Beyond Blatant Speculation

While the portfolio strategist admitted that Bitcoin is a speculative asset in the Western parts, he slammed the mainstream media for not highlighting its inclusive implications for people living in third world nations and underbanked societies.

“…the mainstream media doesn’t seem to appreciate how much potential Bitcoin (and the internet in general) has to grant freedom to populations living and working in many third-world countries where monetary systems are an instrument of oppression.”

Logan stressed how the US dollar would inadvertently lose its relevance as a haven asset due to “the US Federal Reserve currently running some of the loosest monetary policy in history, with 6-7% inflation and 0% interest rates”.

The long-term case for Bitcoin looks solid in the face of the Fed’s continued stance to maintain interest rates near zero, he said. Plus, the top digital asset will experience increased adoption and price growth in emerging markets. That’s because central banks in emerging economies “aren’t even trying to justify why they run double-digit inflation.”

Grayscale Bitcoin ETF

Grayscale’s Bitcoin fund converting to a BTC ETF would be a landslide moment for crypto markets, which in turn would push prices higher. The number one digital currency will become easy to invest in and will attract lots of institutional funds.

“If the application is approved, it will be a huge milestone for legitimizing crypto and will make BTC an easily investible asset class for institutional investors.”

Related: Grayscale partners with BNY Mellon around Bitcoin ETF Plans

These factors Logan claims would lead to Bitcoin topping $75,000 as we head into 2022. But a few black swan events could also lead to a crash.
For starters, Tether’s sketchy asset backing to the current USDT supply could cause an implosion and a severe meltdown. However, the resulting scenario would present opportunities for buying more BTC.

“Tether could easily blow up in the next 6-12 months, and the wreckage would negatively impact BTC. I’d view an event like this as a buying opportunity though. Tether is probably going to collapse at some point, so be ready to rebalance your portfolio when it does.”

Plus, benchmark interest hikes in the US and the EU would trigger a selloff as investors seek shelter in the USD and the Euro. ESG concerns building on the negative image around Bitcoin’s mining process could damage bullish sentiment.

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