Despite the slight decrease in price, the technical outlook for bitcoin (EXANTE: Bitcoin) in 2021 remains "strongly upward," Bloomberg's analysts wrote in a monthly report.
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If bitcoin's price repeats past patterns (in 2013 or 2017), the cryptocurrency would reach approximately $400,000, based on the regression since the 2011 high.
Bloomberg's strategists say last September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month's average price, the price of the cryptocurrency gained over 50x to the peak in 2017. Bloomberg emphasizes that 2021 is similar to 2017 and 2013, as it is the first year after the bitcoin's halving, along with "subdued volatility." As of press time, bitcoin is trading at $56,212 (-3.66%).
In February, Bloomberg said that if bitcoin wants to replace gold in the long run, it should simply maintain what it has been doing over the last few years: appreciating in price and maturing. Most notably, that BTC's volatility ratio trough at about 2.3x three years ago coincided with the bitcoin-to-gold price ratio jumping to 15x at the end of 2017 from 1x, the analysts emphasized.
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