In brief:
- Bitcoin has a 12% chance of breaking $100k by the end of 2021
- This forecast is based on data from current Bitcoin options contracts
- Elon Musk’s tweets on Bitcoin and Dogecoin could increase interest in owning the two digital assets
- Bitcoin looks set to retest $48k in the short term
Bitcoin (BTC) has a 12% chance of closing 2021 at a value greater than $100k. This is according to options-based data provided by the team at Skew that also gave Bitcoin a 2% chance of breaking $100k by March of this year. Additionally, the odds of Bitcoin breaking $100k by June 2021 currently stand at 8%. The team at Skew shared their Bitcoin forecasts via the following tweet.
Options-based Probability of #bitcoin > $100k by:
Mar21 = 2%
Jun21 = 8%
Dec21 = 12% pic.twitter.com/jUuVh1IKVH— skew (@skewdotcom) February 11, 2021
Elon Musk’s Tweets on Bitcoin Could Provide More Fuel for BTC and DOGE
To note is that Bitcoin’s recent all-time high of $48,165 – Binance rate – was as a result of Tesla announcing that it had purchased $1.5 Billion in Bitcoin. Before the electric vehicle manufacturing company made the announcement, speculation was already high that either SpaceX or Tesla would buy BTC based on Elon Musk changing his Twitter bio to simply read ‘Bitcoin’
Earlier today, Mr. Musk indirectly compared Bitcoin to Frodo in the Lord of the Rings saga. According to Mr. Musk, Frodo (Bitcoin) ‘was the underDOGE that everyone thought would fail’. He went on to explain that Frodo did not believe that he was a worthy bearer of the ring. Elon shared his analogy of Bitcoin via the following tweet.
Frodo was the underdoge,
All thought he would fail,
Himself most of all. pic.twitter.com/zGxJFDzzrM— Elon Musk, the 2nd (@elonmusk) February 11, 2021
Such tweets by Elon Musk could continue providing the fuel for Bitcoin and crypto investors to keep buying BTC and the numerous digital assets such as Dogecoin. Furthermore, since Bitcoin and Dogecoin are decentralized assets, Elon Musk might ‘get away’ with tweeting about them unlike when he tweeted about taking Tesla private at $420.
Bitcoin Could Be Gearing up to Retest $48k
With respect to short-term price movement, Bitcoin is currently trading at $46,400 in what looks like consolidation for a second attempt at the $48,200 price ceiling. However, the King of Crypto has several resistance levels ahead of its path including $46,500, $47k, $47,400 and the recent all-time high of $48,165.
Also worth noting is that the Chinese New Year begins tomorrow February 12th. Crypto traders are once again on the fence as to what direction Bitcoin and altcoins will take once the annual event begins. Therefore, traders and investors are reminded to use adequate stop losses and low leverage when trading Bitcoin on the various derivatives platforms.