Analysts Forecast: Bitcoin Price Will Reach $ 100,000 And Then Fall
In recent days, we have seen an increase in the price of bitcoin every hour. This price increase has become staggering.
Price of bitcoin, Market indicators and some analyzes show that we are going to see this price increase by the end of 2021 and we should expect a figure close to 100 thousand dollars, but this rise can lead to a sharp and terrible fall.
According to analysis by the Glassnode website, the Bitcoin “MVRV Z-Score” index and a review of some charts have shown that the cryptocurrency is close to entering the red zone. For this reason, it is predicted that we will face a doubling of the current price of Bitcoin, but it is said that we will eventually face a significant decline. If this really happens, it will not be the first time that the value of bitcoin has risen and finally fallen. This was the last time this happened in 2017.
The MVRV Z-Score is used to measure the value of an asset. When this index enters the red zone, it means that its value is not an asset in the real market and it has probably found a figure that is too high in its real value in the market. At the moment, this indicator is close to the red zone for bitcoin and will enter this zone with a little growth.
In this regard, Glassnode researchers say:
The MVRV-Z index should be used to assess the fair and equitable value of a stock or asset. For this reason, if the asset is overvalued, this index will enter the red zone, and if the opposite happens, that is, if the value of the asset is less than the real value, this index will enter the green zone.
In the market, due to the fact that many bitcoins are bought by some users, the price of these cryptocurrencies has increased due to high demand, and for this reason, analytical charts show that the indicator has entered the red zone. For this reason, when assets enter this range, the fear of losing users’ assets will become more pronounced.
It is expected that by the end of 2021 we will see the price of bitcoin increase to $ 100,000, because if we look at the cycles of bitcoin price rise and fall, we will find everything. Most prominent market investors have made similar forecasts for the price of Bitcoin by the end of the year, all of which confirm this. However, the entry of these codes into the red zone has become stressful and worrying for some users.
In 2017, the Bitcoin currency entered the red range. At the same time, the value of this digital currency doubled. While many investors were happy, their hopes turned cold and the price of bitcoin plummeted.
In this regard, Glassnode researchers say:
The MVRV-Z index should be used to assess the fair and equitable value of a stock or asset. For this reason, if the asset is overvalued, this index will enter the red zone, and if the opposite happens, that is, if the value of the asset is less than the real value, this index will enter the green zone.
It is expected that by the end of 2021 we will see the price of bitcoin increase to $ 100,000, because if we look at the cycles of bitcoin price rise and fall, we will find everything. Most prominent market investors have made similar forecasts for the price of Bitcoin by the end of the year, all of which confirm this. However, the entry of these codes into the red zone has become stressful and worrying for some users.
In 2017, the Bitcoin currency entered the red range. At the same time, the value of this digital currency doubled. While many investors were happy, their hopes turned cold and the price of bitcoin plummeted.
