A little over half a year ago, BTC was barely holding at $16,000, and many believed it would test the $10,000 level or even drop lower. Now, it has almost doubled in value, with $31,000 becoming a fierce battleground for bulls and bears.
In my opinion, $31,000 will be conquered in the upcoming week, and we can expect a surge up to as high as $40,000 or slightly more in the next couple of months (possibly until September this year) before the pre-halving rally corrects.
Whenever Microstrategy purchases more Bitcoin, the price experiences a temporary dip. However, in the medium to long term, their investment fund will generate substantial wealth. Additionally, El Salvador has made significant investments in BTC and is on the verge of breaking even on their previous bull market investment, although this aspect is often overlooked.
$31K BTC, Now What?
Bitcoin's dominance has exceeded my previous forecasts (admittedly, I was wrong), and it is likely to peak at around 60% or thereabouts. Once Bitcoin gains momentum, it will be challenging to stop this massive train. However, at some point, the momentum will fade, and altcoins will take the stage.
Thus far, some Bitcoin forks like Litecoin and BCH have experienced remarkable rallies. Litecoin is approaching its halving in less than a month, so expect a dip as we approach that event. BCH's rally is not over yet. Although I don't recommend leveraged trading, I believe there is still plenty of potential for this particular altcoin.
In 2017, BCH surged 5x in just a couple of hours while Bitcoin remained relatively stagnant. This move resulted in significant profits for a friend of mine, and I must admit I'm tempted to leverage trade the current price action of BCH. However, it's important to note that traders don't typically make much money in crypto; investors do. So, it's a decision to be considered carefully.
$31K BTC, Now What?
It's time to place your bets on altcoins. There isn't much room for BTC to grow. Personally, I believe it will peak around $12,000, which is only a 4x increase from the current level. If you manage to select a couple of winners (such as AI coins), you can potentially make far more than just a 4x return on your investment.
The market is still in the early stages of the bull run (yes, we are in a bull run), despite some altcoins already experiencing decent gains across the board. However, many are still 70%-80% underwater, or even more, from their 2022 highs. So, if you haven't entered the market yet, choose wisely.
"What the wise do in the beginning, fools do in the end." This quote by Warren Buffet holds significant meaning, especially in the crypto world. Many people fear buying when opportunities arise but become confident when the majority turns bullish. However, wealth is not accumulated by staying on the sidelines or following the herd.
Otherwise, there would be far more billionaires in the world right now than there currently are.
Thanks for your attention,
Adrian