As of noon EST on January 7th, Bitcoin is at $39,360 and it’s looking likely it will hit and even surpass $40,000. Congratulations to everyone holding Bitcoin, I bet you’re all very happy right now.
Where will bitcoin go next?
It’s very possible bitcoin will continue to climb as we’re seeing institutional investors enter the space. Additionally, as mentioned in this news post, the SEC is allowing banks to enter the crypto space.
This may mean we’re entering the global adoption phase of bitcoin. This means it could possibly spike to $50,000, $100,000 or more in the next year or two.
That being said, this has been a long run, and it’s also possible institutions and traders will decide to take profits en masse at $45,000 or $50,000. So there may be a correction at one of these two points.
Personally, I think bitcoin is running to at least $45,000 or $50,000 before I see a correction.
Bitcoin’s run has caused a large swathe of the crypto market to post gains as well. Finally, the defi movement has also gone crazy recently, with many in the space quadrupling in value or more.
For those looking to participate in bitcoin’s run, I’d advise trying to wait for a correction. Once bitcoin hits $45,000 or $50,000, look to see if it corrects.
Frankly, I’m hoping it does, as I’d like to acquire more bitcoin myself. At this point, I don’t even know what a healthy correction would look like. A drop of 20%? 50%?
My best guess for a level of support (and possible area to purchase bitcoin) is at around $20,000. That is extremely far from where we are now though and I find it unlikely bitcoin would drop that much.
We’re in uncharted waters. All I can say is that I do hope there is a correction so I can purchase more bitcoin.
Congratulations again to followers of crypto that have held onto their bitcoin and other cryptocurrencies. We’ve officially entered the bull year and bull market for crypto.
Will Salisbury is the co-founder of Blockchain Decrypted and full-time cryptocurrency trader. He also hosts the Blockchain Decrypted podcast, and when he's not talking or writing about blockchain technology and cryptos, he likes to play games and relax in his home state of Michigan.
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