- Bitcoin price shows signs of exhaustion as it continues to recover after the recent crash.
- The majority of the on-chain metrics remain bullish, but the downside threat remains.
- A failure to hold above $40,000 will likely trigger a move to $36,000.
BTC/USD Forecast Poll
The extreme volatility of the cryptocurrencies and more specifically, Bitcoin, requires the trader to stay informed at all times about the latest technical analysis and BTC/USD forecast.
How to Read the Forecast Poll charts
This chart informs about the average forecast prices, and also how close (or far apart) sit the numbers from all participants surveyed that week. The bigger a bubble on the chart means more participants targeting a certain price level in that particular time horizon. This distribution also tells if there is unanimity (or disparity) among participants.
Each participant's bias is calculated automatically based on the week's close price and recent volatility. Drawing from those results, this chart calculates the distribution of bullish, bearish, and sideways forecast prices from all participants, informing about sentiment extremes, as well levels of indecision reflected in the number of “sideways”.
By displaying three central tendency measures (mean, median, and mode), you can know if the average forecast is being skewed by
In this chart, the close price is shifted behind so it corresponds to the date when the price for that week was forecasted. This enables the comparison between the average forecast price and the effective close price.
This chart tracks the percentage change between the close prices. Bouts of volatility (or extreme flat volatility) can be then compared to the typical outcome expressed through the averages.
This measure is basically an arithmetical average of the three central tendency measures (mean, median, and mode). It smooths the typical outcome eliminating any possible noise caused by outliers.
Together with the close price, this chart displays the minimum and maximum forecast prices collected among individual participants. The result is a price corridor, usually enveloping the weekly close price from above and below, and serves as a measure of volatility.
WHAT IS THE FORECAST POLL AND WHY TO USE IT?
The Forecast Poll is a sentiment tool that highlights near and medium-term price expectations from leading market experts. It is a sentiment indicator which delivers actionable price levels, not merely “mood” or “positioning” indications. Traders can check if there is unanimity among the surveyed experts – if there is excessive speculator sentiment driving a market – or if there are divergences among them. When sentiment is not at extremes, traders get actionable price targets to trade upon. When there is a deviation between the actual market rate and value reflected in forecasted rate, there is usually an opportunity to enter the market.
You can also use the Outlook Poll for contrarian thinking strategies. Gonçalo Moreira, Research expert at FXStreet, explains: “People involuntarily follow the impulses of the crowd. Sentiment indicators, in turn, lead to 'contrarian' thinking. The Di helps traders detect sentiment extremes and thereby limit their eventual toxic herd behavior.” Read more on Contrarian Approaches with Sentiment indicators
HOW TO READ THE GRAPHS?
Besides the table with all participants’ individual predict, a graphic representation aggregates and visualizes the data: the Bullish/Bearish/Sideways line shows the percentage of our contributors on each of these outlook biases.
This graph is available for each time horizon (1 week, 1 month, 1 quarter). We also indicate the average price predict as well as the average bias.
In the BTC/USD Forecast Poll 2021, our dedicated contributors expect a modestly bullish outlook, forecasting price stability after this year's huge rally. By the end of the year 2021, the average outlook for the pair was 25.831,94.
From Jan 2020 to Dec 2020, the highest lever for BTC/USD was 27,152.88 on December 28th.
MOST INFLUENTIAL EVENTS IN 2021 FOR BITCOIN
The year 2020 was perhaps the best for Bitcoin ever, not only because of the price action but also for the massive increase in institutional interest. Bitcoin’s future looks bright as the digital asset has surpassed $20,000 for the first time.
Financial institutions around the world are increasingly interested in digital assets like Bitcoin. Laurence Fink, CEO of investment management firm BlackRock, has said that Bitcoin is gaining a lot of legitimacy as an asset class. Banks like JPMorgan and DBS are just starting to adopt Bitcoin, as money is being shifted towards the digital asset.
It seems that most factors are in favor of Bitcoin for 2021, especially after the digital asset broke above $20,000. Judging by the significant adoption growth in 2020, the next year should be highly beneficial for Bitcoin and the entire cryptocurrency market.