Where Does Bitcoin Go From Here?
Where does bitcoin go from here? That is the million dollar question that everyone wants to know the answer to. The market sentiment has turned bearish and how could you blame them? Since May of last year, when the price topped at $64k, it seems as if the price of Bitcoin has been on a constant downward spiral. Excluding the one good month we had in October where prices soar to new highs. But after subtracting that one good month; we have been mostly in a downtrend. Many people who believe that bitcoin is in a bear market would say that it began in November. People who are bolder would claim that it actually started in May of 2021.
The world is in a frenzy, macro markets are in turmoil, everyday people are getting crushed by inflation, and there is a war that could escalate into something even more severe. And to top it all off, the crypto markets have been crushed recently as well, with a large part of the blame being given to the collapse of Luna and UST.
With all of that said, bitcoin is still hangin out around $29-$30k. Nearly 9x above where it was during its price bottom during the previous bear market. That fact alone should have made your bullish senses start tingling. But, that is only the start. A few weeks ago the second country officially made Bitcoin legal tender in their country. That country was the Central African Republic. That is only the start. Last week, El Salvador hosted 44 countries' central bank leaders, where bitcoin was discussed. While it's unlikely that all of these countries would make bitcoin legal tender in their country. However, there is a much better chance that a few of these countries became orange-pilled by the event. These things take time.
Now keep this important fact in mind. From the genesis of Bitcoin to El Salvador making Bitcoin legal tender; that took nearly 11 years to happen. From El Salvador making bitcoin legal tender, to the 2nd country adopting Bitcoin as legal tender as well only took 10 months. A much shorter time period. It is likely that the third country to adopt bitcoin as legal tender will happen ever quicker. The dominoes are beginning to fall.
So where does Bitcoin go from here? And maybe more importantly to those reading this article. How will that affect its price?
We have been in this same price range for what feels like forever. Especially since the US FED began significantly raining interest rates. The FED has committed to raining rates by 0.50% during the next 2 FOMC meetings. This has me believing that we will continue to stay in this current price range for the next month. At that point, when the FED becomes more dovish, that is when Bitcoin will begin to shoot back up in price. There is the possibility that Bitcoin could return to its roots and become uncorrelated with traditional financial markets. But that just hasn't been the case recently.
One thing is for certain, Bitcoin's currency price is a bargain and this is an outstanding accumulation opportunity. In my opinion, the price range that we are currently in is very similar to when bitcoin crashed to just over $3k during the March 2020 covid dip. At that time, if you were able to look past the FUD and fear in the market and accumulate. Chances are that you were able to completely transform your crypto portfolio. Today, we once again have one of those rare opportunities. Just remember to have a long-term timeframe. When in doubt, zoom out.
So where do I personally think the price of bitcoin is going throughout the rest of the year?
I believe that the next 1 to 2 months we will find ourselves remaining in this current price range. After that, bitcoin will finally begin to recover. I won't make any overly bullish predictions claiming that bitcoin will reach a new all-time high, or surpass $100k. But, I do see bitcoin recovering very nicely before the end of year, possibly surpassing $50k or more.
How about you? Are you remaining bullish in this bearish world? What do you think will happen to bitcoin's price this year?
As always, thank you for reading!
