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Bitcoin has been moving sideways during the day after an increase in selling pressure brought back to mid-range of its current levels. The first cryptocurrency by market cap trades at $47,394 with a 5.4% profit in the daily chart.
Despite the cool off in the crypto market, sentiment has turned bullish. Managing Director of Midas Touch Consulting Florian Grummes recently supported the optimism thesis for the long term.
In an interview with David from Kitco News, Grummes reiterated his prediction on Bitcoin and claimed that the cryptocurrency will continue into uncharted territory in 2021.
In that sense, he expects BTC’s price to rise above the $100,000 mark in the next six months on the back of fresh capital coming into the market.
Financial institutions could have bigger motivations to jump into BTC. The cryptocurrency is amongst the best-performing assets of the decade and, as Grummes said, there is “a lot of pressure” on these entities to show good performance on their investments.
The Managing Director for Midas Touch believes that Bitcoin was designed to perform well under the current economical conditions. He said:
(…) lots of institutions still have to catch up there, and I think this was all implemented in the game theory of Satoshi (Nakamoto, creator of Bitcoin) and it’s playing out wonderfully.
In the short term, Grummes acknowledged that BTC’s price saw a “good” bounce over the past weeks. However, the bullish sentiment generated by this price action might be turning into “greediness”.
Therefore, he recommended caution to those looking for an entry and added:
I wouldn’t buy here on these levels. I’ll be waiting for a pullback, I’m pretty sure it will come towards maybe $34,000 to $38,000 something around that range it’s going to be interesting again.
Bitcoin Rallies Against The Odds, On Track To $1,000,000?
This potential pullback will provide more information about future price action. Grummes didn’t rule out a revisit to the yearly open around the $20,000 levels if BTC’s price is unable to hold support at $35,000.
On the contrary, if support holds at the mid-area of those levels, “$100,000 will happen within the next 6 months”.
Speaking on the factors driving the bullish price action, Grummes referred to the BTC miners’ migration from China. Despite a great portion of the network was “eliminated”, the cryptocurrency continued in a demonstration of “what doesn’t kill you makes you stronger”, the Managing Director said.
If Bitcoin does manage to climb to $100,000, it will be business as usual with high levels of volatility as people FOMO into the market. This could lead to another 50% pullback, and a return to previous highs, a similar scenario to the past months.
Eventually, the first cryptocurrency by market cap could trade at $1,000,000, at some point “during the next decade”, Grummes predicted. However, this will depend on the monetary policy adopted by central banks.
If these entities keep “printing money”, Bitcoin could absorb it to drive its price much higher. Short-term holders and FOMO are the two main factors that could stand in the way of a fresh rally.