2021 has been an insanely active year in the Crypto markets so far to say the least with Bitcoin stealing the show and moving from a multi-month consolidation position around the 10 – 12k zone and rocketing all the way up to break $40,000 before correcting and consolidating back down to 32 – 37k.
Ethereum is not far behind Bitcoin with it’s recent break of the previous multi-yearly all-time high of $1,400. This 2021 bull market is thought to be at least partly driven by the Federal Reserve and other huge national companies and organizations investing millions and millions of dollars into the financial markets and obtaining obscenely huge positions in Bitcoin and other cryptocurrencies.
It seems safe to say that Bitcoin has finally gone mainstream and may very well be on its way to becoming a stable global currency and a strong backbone of the world economy. Bitcoin is now available for purchase through PayPal and many local gas stations throughout the United States are also offering Bitcoin purchasing services. Most online E-commerce stores and other retailers and service providers are also now accepting Bitcoin so it’s really exciting to see this mass adoption.
If you’re looking to purchase Bitcoin in anticipation of further price increases then please sign up at Kraken.com to begin trading today.
What’s Next For Bitcoin And Other Cryptocurrencies In 2021?
We will likely see a continuing bull market with Bitcoin, Ethereum, and other major stable coins rising to new price discovery areas before finally settling into long-term consolidation and capitulation periods where the market goes sideways for several months or even years on end.
There is a saying that everyone is a genius in a bull market and that saying especially applies during this 2021 bull cycle. It’s always prudent to plan for market downturns ahead of time so that when the price crashes 30 – 50% in a single day you aren’t surprised and in a really glum mood because you didn’t scale out properly and lock in some of your profits.
One method that professional swing traders use is to scale in and scale out their position sizes which enables them to get an overall cheaper price for the given coin that is being bought and traded. Then, once the coin has rallied to higher price targets the investor will then sell a percentage of their total portfolio and withdrawal their cost basis back into fiat where things are more stable and not subject to Crypto’s wildly volatile fluctuations in the brutal bear trends that can strike without warning and wipe investor’s profits out in the blink of an eye.