The latest valuation of Bitcoin at the press time is pegged at $5,170 which marks the revival from its initial level of $4,912. This latest rally has allayed the fears of investors who, at one point in time, became skeptical about bearish sentiments coming back into the market. The surge in the value comforted stakeholders and has sent a positive signal across the crypto industry.
Many industry veterans have come up with their estimate about how much Bitcoin is going to gain in the short to the long-term time period. According to the Chief Executive Officer of the BitMEX, Arthur Hayes, the prices of Bitcoin might touch $50,000 in the next 2 to 5 years, a statement which is clearly seen as overoptimistic by many in the technology circles. The principal idea behind this assumption is the fact that the policy of the various Central banks including US Federal Reserve is pushing investors towards more risk-prone options as they start looking for more handsome returns even if it comes with high-risk options. This trend is going to pump more money into Bitcoin and other cryptocurrencies and possibly fuel investment growth in other digital assets.
Technical Analysis of Bitcoin
From a technical viewpoint, the value of BTC/USD has been capped by a high resistance area lying between $5,500 and $5,540. Experts estimate that once this limit is crossed, the limit will move upwards and new level could be set around $6000. The limit can be then extended to an upward level of $6,640 once Bitcoin crossed the $6,000 mark. In terms of downward support, the boundary has been set between $4,550 and $5,000.
Overall, the last few weeks have gone down really well in terms of crypto recovery and fuelled the hope among investors of more bullish recovery in the coming days. To keep the enthusiasm alive, there must be constant efforts to promote adoption of cryptocurrencies while widening the scope of their operations. The policy support and regulatory framework are important for strengthening the credentials of crypto for routine and daily purchases. This wide adoption, in turn, is going to have a positive impact and could possibly play an important role in how the markets decide on the value of Bitcoin or for that matter, other cryptocurrencies.