Bitcoin network and token: Let us dig deeper
Bitcoin is a leading cryptocurrency that is used as a store of value and as a means of exchange. It has been around for more than a decade and is one of the most commonly-used coins by retail and institutional investors.
Bitcoin price is trading at $41,176 (on 21st March), which is about 41% below its all-time high of near $70,000. Still, this price is substantial considering that the coin was trading at less than $5 a decade ago. It has a market capitalization of over $779 billion, making it the biggest coin in the world.
BTC has a total supply of 21 million coins. According to CoinGecko, the total coins in circulation will be over 18.9 million, meaning that only 2.1 million coins are yet to be mined.
Bitcoin is a proof-of-work network, meaning that new coins are generated through a process known as mining. This mining, which is done through a network of computers, is known for being slow, energy inefficient, and safe. Further, in a recent upgrade known as Taproot, Bitcoin introduced smart contracts in its platform.
Bitcoin (BTC) price history & technical analysis
Bitcoin had a strong performance during the Covid-19 pandemic. At the time, it managed to move from below $10,000 to a peak of over $68,000 in November 2021. It formed a double-top pattern at about $68,000.
In price action analysis, a double-top pattern is usually a bearish sign. And true to that, the price has collapsed by about 41% from its all-time high. It has also moved below the 100-day and 50-day moving averages, signaling that bears are still in control.
A closer look shows that the coin has been moving sideways in the past few weeks. As a result, it has formed a symmetrical triangle pattern that is shown in black. Therefore, with this triangle nearing its confluence zone, there is a likelihood that it will have a bearish breakout in the near term. If this happens, the next key psychological level to watch will be at $35,000.
Bitcoin (BTC) price prediction for a year
There are two main views about Bitcoin in the financial market. There are those like Cathie Wood, Elon Musk, and Michael Saylor who believe that its price will keep rising and move above $100,000 in 2022. On the other hand, there are bears like Jim Chanos who expect that it will crash.
The closely watched stock to flow model estimates that Bitcoin will end 2022 at around $106,000. If this happens, it will be more than double where Bitcoin is trading today.
Meanwhile, according to Wallet Investor, Bitcoin will end 2022 at above $50,000, which is slightly higher than the current level. Another estimate by Digital Coin Price estimates that Bitcoin will average $55,000 in 2022, with a maximum price of $58,000.
Bitcoin (BTC) price prediction for 2025
Analysts also have mixed feelings about the future of Bitcoin prices by 2025. Some expect that it will fizzle out as demand fades while others expect that it will keep rising.
A case for both can be made. For example, on the weekly chart, the coin has made a double-top pattern, meaning that a major bearish breakout will likely happen. On the other hand, using the Andrews Pitchfork tool, it can be estimated that Bitcoin will be between $90,000 and $130,000 in 2025.
According to Digital Coin Price, the estimate is that Bitcoin will average about $76,000 in 2025. The upper limit during that year will be $84,000 while the lower limit will be at $71,000. Meanwhile, according to Long Forecast, Bitcoin will start 2025 at $86,000 and end the year at about $70,000. Crowd data by CoinPricePredict estimates that Bitcoin will average about $116k.
Bitcoin in Questions & Answers
Is Bitcoin coin real?
Yes. Bitcoin is a real coin with a market value of over $779 billion. It is a coin that anyone can mine and even use to make purchases or send to other people or companies. It is also the most popular assets in the cryptocurrencies industry.
Will Bitcoin price reach $100,000?
Bitcoin has had a remarkable history in the past decade. Its price has moved from less than $1 to over $68,000. Therefore, there is a likelihood that the coin will keep rising and possibly hit $100,000 in the next few years. Furthermore, the coin’s supply is declining, and there are chances that demand will rise, helped by institutional investors.
Should I buy Bitcoin?
Bitcoin seems like a good investment, especially among long-term investors. Historically, it has outperformed other assets like stocks and gold. Therefore, while it is a volatile asset, there is a likelihood that it will continue doing well.
How much will Bitcoin be worth in 5 years?
There is a likelihood that Bitcoin will be above $100,000 in the next five years. This growth will be driven by diminishing supplies and rising demand.
Where do I buy Bitcoin?
You can buy Bitcoin in centralized exchanges like Coinbase and Binance. Also, you can buy it in DEXes like UniSwap and PancakeSwap.
