Bitcoin has had a miserable few months since hitting its new all-time high this year. The top asset broke through the $30K resistance level last week and fell down to $28K. However, it quickly recovered above $30K after that and has since been trending upwards towards $34K. Currently, BTC is trading at $35,270.
The area represents a critical resistance point for Bitcoin. Breaking the price downwards could be the start of a bear market - some speculate that Bitcoin could fall as low as $10K if the price breaks $30K.
But what if that doesn't happen and BTC stays above $30K? Well, then Bitcoin could be in for another massive rally - one that possibly takes the asset all the way to $100K.
Bitcoin's price movements
Historically, there has always been a big drop before Bitcoin recovers. The price usually stays within a certain price range for a period of time. It fluctuates slightly up and down - but never makes a significant move. After that, the subsequent rally usually takes the coin to a new all-time high.
Bitcoin has now spent 17 days trading within the $20K to $30K range. That's not a high number - but it's the first time it's happened. That means: there is an air pocket below the $30K line. This explains why traders have struggled to keep the price above $30K.
If the price can hold this line for the next month, then it is likely that we will see $100K per bitcoin by the end of the year. Holding at a critical point means that there is still confidence in the market. People are buying bitcoin again because they believe the coin has hit a new low. And that may have just happened.
Bitcoin has lost over 50% from its all-time high. A number that usually signifies the start of a bear market for an asset. But BTC has not fallen long enough to officially declare a bear market.
Nonetheless, if the rumours are true that Bitcoin has reached its new low, then it can only go up.
More likely to go up than down
According to a Bloomberg report from earlier this year, the bitcoin price is likely to reach $100,000 in 2021. According to the "Bloomberg Crypto Index", Bitcoin is in a dormant bull market. So while it might look like a bear market, the asset is just taking a break before its next rally.
Vinny Lingham is a well-known name in the crypto industry. He is famous for correctly predicting the price movements of coins like Bitcoin, Ethereum and FIL. Therefore, his predictions definitely carry weight in the market.
Lingham recently posted on Twitter that we will see $100K this year - if Bitcoin can hold the $30K price range.
Other users agree with Lingham under the tweet. One user even predicts a price of over $150k by Christmas.
Another points to the lack of momentum in the market. Since there is not much buying pressure at $40K, the price of the coin is pushed into the $30K range. But at $30K, buying pressure is high. This prevents bitcoin from falling below this critical threshold.
The lack of momentum in the market is certainly a concern. But sometimes that is also a good thing. Without momentum, investors tend to believe that the market has bottomed. Then they buy again so as not to miss that bottom - and that will be the momentum that drives the price up.