Prohashing Mining Pool Forums

Market_analytics wrote: ↑Thu Dec 31, 2020 5:23 am Bitcoin cryptocurrency forecast for 2021
I welcome my readers!

This article deals with bitcoin predictions so that you can see major scenarios to trade Bitcoin in 2021.

Bitcoin forecast for 2021

The Bitcoin price chart below displays the BTCUSD market structure since 2017. The vertical lines mark the start of the new trade year. I want to explore the likely cryptocurrency trading scenarios to suggest the price predictions for BTCUSD and other cryptocurrencies for 2021.

The periods of booming Bitcoin price growth occurred during the entire 2017, in the first half of 2019, and almost all the year 2020, except for a few first months.

I would like to note two essential details. First, all growth streaks have featured the so-called trend acceleration. It means the market started rising slowly, forming a series of corrective waves and small impulse waves. As the trend was developing, the price was growing faster. For example, in 2017, the market was slowly climbing up in waves [1]-[2]-[3]-[4]. However, the price soared very fast in the wave [5]. If we looked at the internal structure of wave [5], we would see that the fifth wave of wave [5] is also the most powerful. So, the trend accelerates as it develops.

Because of this feature of the major cryptocurrencies, almost all powerful trends look like an arc that gradually approaches a particular imaginary vertical line but never reaches it. And the closer the market is to this vertical line, the greater is the price change per unit of time.

You are likely to remember the graphs of functions studied in the course of school mathematics. The representation of such patterns in the cryptocurrency markets features a fast rise and gradual correction. First, the market is rising very fast, and then, the price hits a kind of ‘ceiling’ and starts sliding down slowly in a correction.

For example, at the end of 2017, the Bitcoin price reached a level of 20,000; the cryptocurrency traders were too excited; many bought the cryptocurrency in the hope of its further rise. However, after reaching the high of 20,000, the price rebounded and started declining, slowly but steadily. There is such a regularity that the majority is always at a loss. Once the majority of traders believe in further price growth, the market reaches its ceiling, turns down, and starts declining.

The same was in the middle of 2019. First, the uptrend accelerated, rising along the arc-shaped trajectory. Next, the price reached the ceiling suddenly, turned down, and started falling. Furthermore, many thought at that time that there began a new global wave of the BTCUSD uptrend. However, the price didn’t continue growing; instead, it started a long-term correction that lasted for about six months. You see now that correction is the [Y] wave of the global correction 4.

I believe the current situation is similar to that of 2019. Almost the whole year of 2020, the uptrend was accelerating. Now, just before the new year, the market is flying up, hitting new all-time highs. The price is rising almost vertically; the uptrend looks more and more similar to the imaginary vertical line, which I schematically represented with a dotted line.

The market is moving up very fast along the arc; the price can’t be growing indefinitely. Judging by the wave's slope and its similarity to the vertical dotted line, I can assume that the trend is close to its ceiling. The price should soon hit a kind of limit and turn down.

I suppose the uptrend could end in late January 2021. First, all waves will be well-proportioned and fit in the wave patterns. Second, I suggest we consider the time cycles.

The first bullish trend that ended in late 2017 is the first pivot point. The second important reversal point is in eighteen months, in the middle of 2019. And the third pivot point should soon occur, as it has been eighteen months since the second reversal. It seems in the current market situation that the strong and fast bullish trends end, and the price turns down once in eighteen months.

Of course, such a pattern would not always repeat. Nonetheless, I believe the third pivot point is likely to emerge according to this time cycle. Next, we shall explore the structure of wave patterns to determine whether the market will end the growth wave in the middle of 2022.

I would also like to note that the price is sliding down quite slowly, following those powerful arc-shaped uptrends. The price decline after the trend is obviously a correction. So, I expect the BTCUSD to be slowly declining during the entire 2021.

I drew an approximate trajectory of the Bitcoin price movement in the chart. However, it is not yet clear what wave it will be.

The likely chart structure, I drew in the chart, so far satisfies the requirements for predicting impulse 5. Impulse 5 could end at a level of around 32,000. Next, when the bullish impulse ends and the down correction starts, the wave structure could be revised, but the general prediction for 2021 will remain the same.

Conclusion
To sum up the article, I would like to note that now, just before 2021, we should enjoy the final stage of the powerful Bitcoin uptrend. The bulls could lose power soon. If so, the BTCUSD market should turn down and start declining after it reaches a level of 32,000, which could occur as soon as the second half of January 2021.

Happy New Year! I wish you good luck and good profit in 2021!
For more information follow the link to the website of the LiteForex
https://www.liteforex.com/blog/analysts ... &cid=79634