The price of bitcoin rallied in a matter of hours this Thursday, January 14.
At its all-time high, bitcoin surpassed $ 40,000 again.
After a drop of more than 20% in a matter of hours on Monday, January 11, the price of bitcoin has recovered in two days and is approaching $ 40,000 per unit again.
Between this Wednesday, January 13 and Thursday, January 14, bitcoin went from being below $ 33,000 to exceeding USD 39,000 again and momentarily touch $ 40,000, on exchanges like Binance. This seems to confirm the normality of the constant price movements that analysts have pointed out in recent days.
At the time of writing this note, the price of bitcoin is hovering around $ 39,600, 30% above the floor that it touched last Monday, at $ 30,500. In a matter of 12 hours, its market price has risen more than $ 3,000.
On exchanges like Binance, bitcoin momentarily topped $ 40,000. Source: Binance.
In the last 24 hours alone, bitcoin has risen more than 13%, accompanied by much of the main altcoins in the market. Only ripple (XRP) is in the red in that period among the top 20 coins according to market capitalization.
With this behavior, bitcoin maintains the dominance of the market behavior. As reported by CriptoNoticias just a week ago, the movements of the main cryptocurrencies in recent months suggest that a hypothetical “altcoin season” is far away.
Correction needed in a bullish bitcoin scenario
While traditional media pointed out the fall as a catastrophe, in the environment of cryptocurrency market analysts there was talk of a necessary correction to then resume the upward pace. For some, this year we will see a very significant price increase for bitcoin, which in no way contradicts the drop on Monday.
Ecoinometrics analysts pointed out this Wednesday in a report that, While Monday’s drop was significant, it was not the biggest correction in bitcoin history.. It is also not a rarity if it is put in perspective with respect to other major bull runs. For example, with that of 2017.
Precisely, one of the most common predictions among those who study the bitcoin market takes 2017 as an example because it is a post-halving year. The same can be said of 2021, the year that follows the third event of this type, which occurred last May.
Halving is an automatic mechanism by which the rewards for Bitcoin mining are periodically reduced. Every 210,000 blocks, the amount of BTC that goes to miners to find a block is cut in half, which reduces the growth rate of the total supply of bitcoins in circulation and, consequently, its supply in the market
Also Coin Metrics considered, after the fall, that this was not representative of a bearish outlook in the long term. Even when looking at the network statistics in terms of active Bitcoin addresses and the all-time highs in mining power and network difficulty, the firm considered that the future looks very promising for the cryptocurrency created by Satoshi Nakamoto just 12 years ago. .
Bitcoin at $ 100,000 by April 2021?
Ecoinometrics analysis goes beyond looking at this particular correction. When comparing the behavior with the previous post halving periods, analysts dare to sketch the possible prices that we will see for bitcoin this year.
If patterns repeat, bitcoin could hit $ 100,000 in April. By May, we could already be talking about an equivalent of $ 387,000 per 1 BTC, according to estimates by the firm.
Possible bitcoin prices in the coming months of 2021. Source: Ecoinometrics.
The predictions of this firm coincide with those of some analysts even since last year. In this medium it has been reviewed, for example, to Willy Woo considering the 100,000 dollars as a conservative price for bitcoin or Kraken’s prediction putting BTC over $ 250,000 for this year.
Predictions aside, the truth is that bitcoin doubled in a matter of a month the price of its previous historical maximum (ATH), from 20,000 to 40,000 dollars, a level that is currently struggling to resume strongly.