A new bitcoin price prediction puts the cryptocurrency at more than $73,000 in 2021. A chart technician says the only direction for bitcoin is up in the near future, and he’s not the only one. The bitcoin price hasn’t reached $30,000 yet, but that could change in 2021 if the latest predictions are correct.
2021 bitcoin price prediction: $73,000
Chart technician Alan Masters said the next target for bitcoin is $29,890, followed by the $44,000 to $46,000 range based on weekly and monthly timeframes. He also looked at the volume indicator when coming up with his price predictions. Masters noted that institutions are piling into bitcoin "big time" and that banks, which are very opposed to cryptocurrency, are even thinking about adding crypto services.
He also pointed out that the world's central banks have been printing money at a rapid clip, and this trend is expected to continue in 2021. Just as money printing boosts gold, he also expects it to keep driving bitcoin prices. Masters sees bitcoin reaching $73,200 at some point.
Another factor driving bitcoin prices
Masters isn't the only analyst making extremely bullish 2021 bitcoin price predictions. According to Barron's, Fundstrat analyst David Grider raised his six- to 12-month price prediction for bitcoin from $25,000 to $40,000. He noted that the cryptocurrency's strong momentum is being driven by institutional and corporate demand. Retail demand is also a factor as the second wave of stimulus checks starts to go out.
The strong demand for bitcoin is putting a squeeze on the cryptocurrency's supply. According to Cointelegraph, Glassnode analysts said the amount of bitcoin received and spent among entities is falling, which signals a decline in liquidity. Low liquidity means there isn't as much bitcoin available to buy and sell, which means the cryptocurrency is about to become very scarce as adoption continues to climb.
Warning about crypto regulations
Amid soaring demand for bitcoin, Coinbase CEO Brian Armstrong is warning about new crypto regulations and what they mean for privacy. One of the draws of cryptocurrencies is the lack of regulation, but that could change.
The U.S. Treasury Department proposed a new regulation for cryptocurrencies that Armstrong called "a substantial intrusion into your privacy without good reason." It requires crypto exchanges to collect names and addresses for anyone their users send to or receive cryptocurrencies from in any transaction worth more than $3,000.