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bitcoin price prediction

Are you looking to invest in Bitcoin in the coming months? You need to do a detailed analysis in order to have an idea of how the asset will perform in the near future. This Bitcoin price prediction and analysis for March 2021 will provide useful information and important details that will help you with your investment decision.

Bitcoin (BTC) Overview

Bitcoin is the biggest and most popular cryptocurrency, as well as the first to be created. It has grown fast to become one of the most sought-after assets in the world, both for individuals and corporate investors. Although it was created primarily as electronic cash, Bitcoin is now used as a store of value, which is even more suitable because of its high transaction fees compared to other cryptocurrencies. This is why it is referred to as digital gold and a hedge against inflation.

In 2020 and 2021, Bitcoin has gained more acceptance than at any other time during its existence. Corporate investors, in particular, have developed a strong affinity for the asset, which was criticized by most of them as worthless. As a result, the asset has grown to reach a current market cap of $919,250,509,195. Created with a capped supply of 21 million coins, there are currently 18,630,306 BTC in circulation, with a 24h trading volume of $80,181,107,926.

Bitcoin (BTC) Price Prediction: Analysis

Bitcoin has been in a bullish trend in the recent past, and this trend seems to be intact even now. After breaking the 2017 all-time high, it has reached several new highs in 2020 and 2021. It reached the milestone price of $30,000 in January 2021 and has been pushing through up to nearly $42,000 before the first major pullback, which took it back to $30,000.

After ranging between $30,000 and $35,000 for weeks, it finally broke out and started its journey back up. Incidentally, this coincided with the time when Tesla invested $1.5 billion in the asset. After that, it didn’t only find its way to $40,000, but also went all the way up to the current $49,000.

The price is still ranging between $49,000 and $48,000 and could be consolidating. No clear pattern has been formed yet, but a likely upward break could be underway, considering the strong upward trend. However, if this fails, support has been established at $45,540 from which the price could bounce off should it break downward.

The RSI is currently at 72, which ideally would suggest that Bitcoin is overbought, and sellers could soon step in to take the price down. However, the RSI has exceeded 90 in January before a drop, which means there may still be room for the asset to go higher before holders start to sell.

For those trading BTC, the following are critical support and resistance levels to keep in mind as calculated by Walletinvestor:

  • Resistance Level (R3): 51537.33;
  • Resistance Level (R2): 50200.07;
  • Resistance Level (R1): 49094.73;
  • Pivot Point: 47757.47;
  • Support Level (S1): 46652.13;
  • Support Level (S2): 45314.87;
  • Support Level (S3): 44209.53.

Developments

More mainstream institutions are showing interest in Bitcoin following Tesla’s $1.5 billion investment. The latest of this is Morgan Stanley’s $150 billion investment arm, which has indicated interest to invest in the asset. This is coming after the oldest American custody bank NY Mellon said it will soon offer crypto custody services to clients. Meanwhile, a top executive of JP Morgan has expressed confidence that the Wall Street giants will soon participate in the industry, as the price of Bitcoin continues to grow with support from new investors.

Bitcoin Price Prediction: Market Opinions

Tradingbeasts

Tradingbeasts doesn’t expect any dramatic change in price in March. The website predicts that Bitcoin will be worth $38,773.083 by the start of March. Their BTC price prediction also states that the maximum price expected for the month is $48,917.864, while the minimum price is  $33,264.147. The closing price for the month is $39,134.291.

Provisionibitcoin

Provisionibitcoin predicts that Bitcoin will see a massive adoption in the coming months, which will boost its market cap. In March, the rise is expected to be very strong with a resultant rise in price. Therefore, for its Bitcoin price prediction, it expects that the price will hit $71,513.81 within the month.

Longforecast

Longforecast expects the price of BTC to increase by 101% in March. As a result, the price prediction is that it will reach $56,403 at the beginning of the month. The lowest expected price is $51,351, and the closing price is $65,427.

Digitalcoinprice

Digitalcoinprice is quite bullish on Bitcoin. The website expects the price to increase by 57.73% in March. This will increase the price to an average of $77,763.62 in March 2021.

Bitcoin Price Prediction: Verdict

This was Bitcoin price prediction and analysis for March 2021. Generally, it seems most of the predictions are bullish, but caution should be exercised when taking decisions on investment.

Featured image: esan.edu.pe

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