Crypto Market Update (Bitcoin):
Updated: Mar 22, 2021
Fundamental analysis:
The demand for bitcoin continues to rise against shrinking supply. The supply of coins available on exchanges continues to fall as investors continue to move assets from exchanges into cold storage for safe keeping as investors continue to pile into the asset. This week, we continued to see further adoption by major institutions, with announcements from Morgan Stanley and VISA.
Supply Data: Via, Willy Woo (Twitter)
Technical analysis:
Long term outlook (monthly chart):
We are still in the early stages of where this cycle can potentially go. I anticipate $100,000 by summer, and $250,000 by years end with the current rate of adoption. Bitcoin is unlike any other asset class in the sense that adoption translates directly to demand. In order to adopt the technology, one must own and transact, or mine the supply.
Medium term outlook (weekly chart):
If we see strong demand and price bids up to new highs on a weekly basis and into the weekly close Sunday, we may see $70,000-90,000 in the coming days/weeks.
Short term outlook (daily chart):
For now price is hugging the parabola and as long as the 20 day MA ($54,000) holds then immediate upside should continue. The further we drift from the parabola the higher the risk of a longer consolidation into April before new highs.