In the past week, Bitcoin prices recovered from a previous crash. This price pummel took BTC prices from a high of USD 58,300 to a low of USD 43,200. What’s going on with Bitcoin prices today? Are Bitcoin Prices going up? Read on our Bitcoin Price Prediction, which will take into account the upcoming Stimulus cheques distribution in the US.
Bitcoin Price Today – Analysis
If we closely monitor Bitcoin’s price for the past two weeks (ie. right after the price crash, we can notice a clear consolidation pattern. Prices seem to consolidate between USD 43,200 and USD 52,000. You might be thinking that this is a huge price range to consolidate around, but bear in mind that this represents a mere 20% price difference. Bitcoin’s volatility was always a well-known topic among cryptocurrency investors.
Will US Stimulus Cheques push BTC price higher?
On March 6th 2021, the US Senate approved a third round of stimulus cheques to be distributed among more than 200 million Americans. This will take effect towards the end of the month. Many young adults who are already doing well financially, are assumed to cash in their cheques in order to buy Bitcoins and other cryptocurrencies. Let’s try to predict what would happen to Bitcoin if a small percentage of Americans decide to buy Bitcoins after receiving their cheques, shall we?
- Total Stimulus cheque worth: USD 1,400
- Americans between 18 and 34 years of age: 76.2 million (*)
- Total amount paid to those young adults: USD 106.6 Billion
- Assuming only 0.5% of those young adults will buy Bitcoins
- Total amount invested in BTC: USD 533.4 Million.
Insane! This would definitely move the whole cryptocurrency market. Of course, in reality, this would hardly happen, maybe 10% of that amount would in reality translate, and still, this would push prices further up. That’s only one fundamental element that would let Bitcoin prices go up.
Bitcoin Price Prediction
Where would the price of Bitcoin go? Great question. Two case scenarios present themselves:
- Scenario (A): If the resistance level of USD 52,000 was successfully broken upwards, we can expect the price to reach the psychological price of 60K.
- Scenario (B): If prices fail to pass that resistance price, further consolidation would definitely occur, with a danger of losing upward momentum.
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