This year has been a dramatic year for Bitcoin as its investors smile all the way. According to Tom Lee, with the rise in bitcoin value, its price may exceed $27k by summer.
Analysts predict that Bitcoin will have gains of over 200% for the next six months.
So far this year, Bitcoin has been on an upward trend. In January of all months, it gained up to 26%, which is contrary to expectation. According to Tom Lee, Bitcoin has already recovered its 200-day moving average, meaning its back in the bull market.
According to analysts, Bitcoin has had the most successful January from 2013, and that’s a sign that it has started a long-term bull cycle.
Even though 2019 was still a good year for Bitcoin investors despite the high volatility, this year is more promising. The halving expected in May means a lot, and many are waiting for it with enthusiasm. It will reduce the Bitcoin supply by 50%, which will lead to an increase in demand, and rise in bitcoin value. The halving will lower the inflation rate making it lower than gold and the inflation target.
According to Stock-to-Flow, which is a price forecasting model, the halving will trigger a bull run, which will spike the price to up to $100,000 by December 2020.
Bull market breakout
With the rise in the price of Bitcoin, there are more and more investors that are tapping into the currency during the “buy the dip phase”. There is, however, a conflict of interest, as bears continue to hold on to the currency so that the upward trend subsides. The main goal of the bears is that the price does not exceed $9800.
There is a tug of war between the bears and the bulls. As much as the bears don’t want the currency to exceed $9800, if the bulls manage to make it exceed that amount then $10,000 is attainable. That will simply indicate a full-on bull run.
The rejection in the price of Bitcoin is not a new concept as it also happened during the summer of 2019. If it, however, manages to break the rejection, then the sky is the limit. It means it can even achieve a high of $100, 000 which will be a major bull run.
From the trends, it is hard to accurately predict what the future holds. All crypto investors are just hanging in there, hoping for the best.
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