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Bitcoin Rally Predicted for Q4 2021 Following Its Latest Slump
Many strategists were disappointed after Bitcoin's crash in early September. Now, many claims that instead of happening the same as last year, Bitcoin will decrease to $20,000. Although the future looks a bit gray for this cryptocurrency, the reality is that it could certainly go much higher, historically speaking. To understand this a bit, we must first know the reasons for its current decline.
Acceptance of the use of Bitcoin as a legal tender in El Salvador
This is undoubtedly a historical fact for Bitcoin, because its acceptance as legal tender has been evaded since its inception. Despite this, many traders, investors and billionaires have accepted the use of this cryptocurrency. This acceptance caused that for the first time a country allowed Bitcoin to circulate in a regular, completely legal way. From this September 7, 2021, the law that would allow the use of this cryptocurrency in El Salvador came into force.
Bitcoin is doing it, but how?
In June of this same year, the president of El Salvador announced that the legislative assembly had approved a project that would make the use of Bitcoin legal. Not only that, it would become a common currency, with which it could be bought in any trade in the country. An official BTC wallet was created, which is the one that will be used in the country for purchases and exchanges of this cryptocurrency. This allows Salvadorans to exchange currency for cash without commissions of any kind, an obvious help when sending remittances. Many were counting on this to become a trigger for Bitcoin to hit its all-time high of $60,000. But because not the whole country directly accepted this change, it resulted in several situations where it was expressed that Bitcoin was only for illicit transactions.
This ended up triggering a huge decline for this cryptocurrency, in addition to speculation that it will end this year in decline. Everyone is attentive to the evolution of Bitcoin as a legal tender. The protests are mainly caused by ignorance of the cryptocurrency, since many people fear losing their money. Although it was announced that its use was not mandatory and those who do not want to use it will be able to continue their life normally without problems. Corruption is imminent in Latin American countries, illicit transactions are directly approved by many governments and banks. Bitcoin for its part will bring more benefits than complications, but people are in an ignorance that can only be appeased by knowledge. This is why the acceptance of Bitcoin as legal tender is expected to be well-received by 100% of El Salvador. Which would bring great benefits to this cryptocurrency, including a historic rise.
Price levels that Bitcoin will reach this year
Due to the acceptance situations that occurred when the law was approved in El Salvador, Bitcoin has had bearish tendencies. Many fear that it will collapse due to this situation, as it is ending its weekly closings with poor forecasts. But all is not lost, since almost everyone who predicts this decline is based on the weekly statistics of this cryptocurrency. This certainly affects Bitcoin's 50 and 200 day moving average, both of which must recover to return to its uptrend.
The golden cross that affected the predictions
Bitcoin moving averages were expected to draw the expected golden crossover, recognized as a bullish signal. Which appears to have been thwarted by the sale that took place this week. But what really happened is that this sale happened right in the middle of a golden crossing that was pending. In this, the 50-day moving average passed above the 200-day average. Which is recognized as a bullish signal within the market, most commonly for Bitcoin, where these falls are seen in “golden crosses”.
It is expected to reach USD 60,000 for the last quarter of the year
Regardless of what has happened this month, the uptrend is still in place, but in the long term, so it is not affected by this week's lows. Remember that this is usually very common when the month of September approaches, which is on the black list of cryptocurrencies. Historically speaking, this month is often difficult for those trading Bitcoin and other cryptocurrencies. Although because this has happened repeatedly, it could be said that September is a catapult month. A catapult month is where a cryptocurrency tends to go down and then into an uptrend. This is exactly what is expected for the month of October, a drastic change in price action for Bitcoin. It is expected that at the beginning of the last quarter of 2021 this cryptocurrency will reach USD 60,000 again. Needless to say, this also predicts that Bitcoin will pick up momentum leading to a new all-time high.
You must be wondering how far Bitcoin could go by the end of this year, as the predictions are very beneficial. It is estimated that its historical maximum will reach USD 100,000. So it is advisable to let the perfect moment arrive to have a large slice of that cake. Some even speculate that it could go much higher, but expecting this with the risks involved would be insane. It is important to have this rise by the end of this year, as it would be a memorable change for Bitcoin. Especially if we have its acceptance as legal tender, since it would be opening a whole world of possibilities.
