Even if Bitcoin closes below $50,000, it achieved massive gains in 2021
By Noemi Jansana / Alejandra Zamora
Date: Wednesday 29 Dec 2021
(Sharecast News) - The cryptocurrency market shows signs of running out of steam almost as soon as it began due to the Christmas rally. As we enter the final stretch of the year, Bitcoin attracts the attention of investors looking for investment opportunities after the correction that began last November, following the achievement of new all-time highs. Therefore, Bitcoin (BTC) runs aground at $50,000 after rebounding to $52,000, before falling towards the support of $47,000. However, "it should be noted that during the 2021 year, the cryptocurrency accumulates a rise of over 80%," commented Diego Morin, analyst at IG Markets.
Ethereum (ETH) trades below the psychological barrier of $4,000, losing just over 8% from last week's highs, when it was approaching the $4,200 area, so "a daily close above that resistance will be important after accumulating a rise of over 450% during 2021," indicated Morin.
These numbers make it clear that the cryptocurrency market is at an unprecedented high and throughout 2021 consolidated its role as an alternative investment, as well as one of the most profitable safe havens and inflation hedges. And it achieved this "with a parallel financial model that is also generating a great social revolution," according to Emanuele Giusto Kantfish, author of 'Crypto Jungle. The Low Cost comes to finance'.
Over the last few months, Bitcoin has broken its previous records and has positioned itself among the top six assets in the world, surpassing Facebook and Tesla in capitalization. So far this year alone, investors entrusted $15.447 billion to blockchain companies, according to a report published by Blockdata, which means that the last quarter of the year practically surpassed the investments made during the entirety of 2020. 200 million people transacted with cryptocurrencies in 2021, and in the coming months, Bitcoin - that reached an all-time high of $68,000 on November 9th - could reach a value of $100,000 per unit.
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Cardano (ADA) has lost the psychological level of $1.50, to fall to $1.40, after testing the $1.60 area during the mini-Christmas rally, when it recovered more than 20% from the November lows. Also, the cryptocurrency had a revaluation of over 670%, although it reached 1500% after touching historical highs above 3 dollars, so it will be of vital importance to keep conquering lost resistances.
Dogecoin (DOGE) trades below 0.20 dollars, at 0.17 dollars precisely, returning to look at the lows of December despite bouncing more than 20% a few weeks ago, after new tweets from Elon Musk. For now, "the cryptocurrency should try to close above this level to return to $0.30," stated Morin.
However, Chainlink (LINK) accumulates a yearly rise close to 100% and remains above $20, once it moved away from the November lows, when the market left a support reference around $16. Therefore, "if the cryptocurrency fails to settle above $24, it is likely to test current prices as support," indicated the IG Markets analyst.
Similarly, we have Polkadot (DOT), trading near $29.00 after losing more than 30% in November, but it could close 2021 with an increase of more than 300%, even accumulating 730% when it left its historical highs at $55.29, so the short-term objective will be to return to $36.00.
Finally, Uniswap (UNI) trades in a downward sideways range after hitting the $20 barrier yesterday, so it could close the year with an increase of more than 300%.
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