Bitcoin has been on an absolute tear over the past month or so. Since hitting $6,400, seemingly establishing a bottom, the leading cryptocurrency BTC has surged by 43%, recently hitting a price as high as $9,175 as reported by Ethereum World News earlier today.
Bitcoin is up 43% in a month.
Let that sink in.
— The Wolf Of All Streets (@scottmelker) January 19, 2020
This already makes BTC one of the best-performing assets of 2020 and the new decade, only being outpaced by a select few stocks and other digital assets such as the hardfork Bitcoin Satoshi’s Vision, which has exploded higher off news that Craig S. Wright may be moving closer to a cryptocurrency stash he purports to have, and Ethereum Classic.
With the digital asset market already surging so far higher to start 2020, analysts have been wondering if more gains are possible.
Interestingly, the consensus is that BTC will continue higher into the block reward reduction for BTC, which will most likely activate in May of this year.
Why Bitcoin Price Still Has Upside
Analysts across the board are convinced BTC’s uptrend is not done yet.
Fundstrat Global Advisors, a top market strategy and sector research company based in New York, recently released its 2020 Crypto Outlook to its clients. The firm identified three factors that will give BTC a “strong probability” of gaining over 100% in 2020, meaning a year-end price of over $15,000, due to a confluence of three primary factors:
- The Bitcoin halving: The crypto-friendly firm first looked to the May 2020 so-called “halving” or “halvening,” when the block reward of Bitcoin gets cut in half, effectively resulting in a 50% decrease in the inflation rate of the leading cryptocurrency. Analysts say that this should cause a supply crunch in the cryptocurrency market that could push prices dramatically higher.
- Geopolitical risk: Fundstrat next looked at potential geopolitical risks. With the ongoing conflicts between the U.S. and China, the U.S. and Iran, and other spats taking place across the globe, BTC may begin to prove itself as a digital, non-sovereign store of value in these trying times.
- 2020’s presidential election: Lastly, the firm looked to the 2020 elections. This point was not expanded upon in a sneak peek of the report, though there are notable a few candidates who are more crypto-friendly than others, such as Andrew Yang, and some uncertainty around the election that could push capital towards safe havens.
On the technical side of things, pseudonymous trader Dave the Wave, who called BTC’s decline from prices above $10,000 to $6,400, said that he expects for BTC to hit $11,500 by the middle of February.
Backing this prediction, Dave looked to a confluence of factors:
- Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls.
- The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull.
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