Encryption market trend outlook 2021 and bitcoin market trend analysis in the coming week
2021 will be the most dazzling year for the encryption industry in financial markets. Bitcoin prices soared on the first day of the year, and many positive rumors made the encrypted currency industry appear frequently in the headlines of major mainstream media. What drives the rapid development of the encrypted money industry? How will the digital currency market move forward in the coming year, and can Bitcoin prices recreate myths? Next, I will briefly review and look forward to the future trends of the encryption market in 2020 and 2021, and the price trend of Bitcoin for the next week.
A major investment trend in 2020 is DeFi application. The success and quality of the new project has attracted funds and major companies to invest, and at the beginning of the year these funds and companies did not know much about this subdivision. Investment in the industry began to grow at the end of June, with trading peaking in September, with 16 investments that month.
As competition intensifies, High-valued DeFi deals and microfinance have become more common. In the third quarter of last year, DeFi type is most popular, About 20% of all VCs. Of the top ten most active investors, About 31 per cent of investments are DeFi related. Ever since ETH 2.0 release, V team has shifted its focus to DiFi, And marketing and applications, Compared to old TOP100 coins, DiFi has long become a new star. 2020 is a record year for the blockchain industry. Dapp turnover exceeds 2%, $70 billion, Among them ,95% come from the DeFi ecosystem in Ethernet.
More financial giants will join in 2021
About 17% of VCs in 2020 invest in cryptocurrency brokers, custodians, and fund service providers. The news of the involvement of traditional financial institutions and financial technology companies; PayPal announcement of an encrypted currency service similar to Square Cash applications made headlines. By working with Paxos and using its brokerage services, the company obtained a restricted licence from the New York Financial Services Agency.
Exchange Coinbase will be listed in the first half of 2021. BlockFi is a retail-focused encrypted money lending financial technology company with a listing plan, which is likely to be listed as early as the second half of 2021. Once listed successfully, the digital currency market will quickly occupy the world’s financial centers.
Of course, the more interesting area for investors is the brokerage hosting companies that provide infrastructure for mainstream companies, which the former need to provide encrypted currency services. Companies like gray trust funds are naturally better.
Data analysis industry more precise industry more formal
In the future, there will be more requirements for industry regulation and compliance, which makes data analysis companies more attractive. Chainalysis recently raised $100 million, the company is valued at $1 billion. As companies compete to become rivals, more companies in the industry will merge to become senior data suppliers.
Next week’s Bitcoin market trend analysis
Bitcoin broke through $34000 and began to soar and plummet at a high level; the mainstream currency, led by Ethernet, began to make up for the rally, with a bull market in the beginning of 2021 and a stronger overall market in the future. Recent market high range, can appropriately reduce positions, the future mainstream currency may usher in the overall upward. Bitcoin is expected to hit $37000 this week, with a minimum risk of triggering falls to $22000. At present good news is slow, the possibility of falling again is greater.
January 6 will have a short-term rally, to January 11 shock period in the daily average of 5% market range.
BTC there is a strong resistance level near 35000 above the overall line of Bitcoin, the 28000 support below has clearly broken through, and the defensive position should be set at about $22000.
Short term: can profit in $29500-32000 shock zone.
Do more: can be ambushed at $26000, set up 22000 position, profit point at $28500.
Shortening: use the principal 5, open at $35000, increase the position by $1000 in turn, each time use the principal 2; the maximum replenishment price must not exceed $38000, after falling back and then clear the position in turn.
All in all ,2021 is destined to be a bright year in the block chain and encrypted digital asset market. If you are scared by previous years, I hope you will have more confidence in the industry in 2021. In general, once a project day active users reach more than 100000 levels, it begins to become mainstream. A new batch of encryption applications will break this barrier in 2021, and it remains to be seen whether these new entrants can compose DNA, new block chain.