There are several factors that are likely to push Bitcoin to $30,000 and above in coming months. For starters, bitcoin has broken the psychological resistance level of $10,000. This will signal to the market that this crypto is rebounding after a drastic price fall in January.
As more people come in out of the fear of missing out on the next big move, you can expect the price of Bitcoin to keep going up. Once it retests $15k, volumes will increase and this buying pressure will easily see price grow to $30,000 and above. If past price moves are anything to go by, then bitcoin hitting $30k could happen faster than you can imagine.
But it’s not just the charts supporting the potential for bitcoin to hit $30k soon. There is also the issue of the lightning network. Over the last one year, the market share of bitcoin has been declining, coming to as low as 35% of the overall cryptocurrency market.
The primary reason behind this is that there are many altcoins that now outperform bitcoin on scalability and transaction speeds. These are two key issues that allow a crypto to fully function as a currency.
Bitcoin & the Lightning Network
However, this is about to change with the implementation of the lightning network. With the lightning network, bitcoin will become multilayered, which means it will have an application layer whose speeds will rival those of ripple and many other altcoins whose transaction speeds are the key selling points.
With this layered system, bitcoin wins against any altcoin in the market. For instance, in such a layered system, bitcoin can easily take on privacy coins such as Monero. There just needs a privacy application running on the highly secure bitcoin network. This layered direction that bitcoin is taking could easily see it hit valuations of over $100K in the near future. It could actually see bitcoin monopolize the entire cryptocurrency market.
First Point of Contact
There is also the fact that bitcoin is still the most known crypto in the market. As more people get to learn of cryptocurrencies, their first point of contact with this market is bitcoin. This means that bitcoin trading volumes will continue to increase as people get to learn about cryptocurrencies. As a consequence, you can expect the price of bitcoin to increase over time. On this basis alone, a valuation of $30K and above is within reach for bitcoin.
A combination of all the above factors is then given a boost by the fact that bitcoin is increasingly getting adopted by governments. For instance, recently the state of Arizona passed that it would be accepting bitcoin tax payments. This is big news for a crypto that is already on the move. This gives bitcoin the catalyst is needs for it to grow quickly towards a valuation of $30k and above.
Therefore, as an investor it makes sense to buy and hold bitcoin right now, with $30k as your target in the near-term. Don’t be surprised if it beats this target and hits even higher valuations of $50k and above.