If you want to know about bitcoin price prediction or what the price of Bitcoin will be in 2020, read this article where we perform a projection based on technical analysis.
After a good bullish momentum started in January of the current year, Bitcoin price prediction began an accumulation that triggered a temporary trend change.
With the breaking of a support located at approximately USD 9,250, the control of the sellers was confirmed; situation that could extend to supports located between 3,500 and 4,500 USD.
This being the current situation, Bitcoin price prediction in 2020? Next, we will be arguing our projection for the coming year.
As I mentioned in the previous paragraph, the current situation of Bitcoin is bearish, so my projection for the end of the year is to close with a lower price than the current one.
However, my vision of Bitcoin price prediction is optimistic in the long term, there are many factors that lead us to the same conclusion, cryptocurrencies will become an important part of our daily life; Later I will be making a brief summary about these factors.
After Bitcoin realizes the expected bearish momentum for this 2019, the price will seek to consolidate in the surrounding area at 4,250 USD, or perhaps higher, above the 6,000 dollars.
At this time, we will begin to see the exit of the sellers and an increase in purchases, mainly caused by the low price; there the birth of a new bullish moment, with several fundamental factors that will drive it.
This is where my bullish projection for the Bitcoin price prediction in 2020 was born, indicating conservative targets around USD 13,850.
Why would the current Bitcoin bearish trend end?
It is impossible to know exactly where the price is going to stop, what we can know is that Bitcoin is currently involved in a well-defined downward trend, and that it could take it to a minimum where purchases will be again incentivized there.
Those who will buy the most will be those with the greatest capital, who will also be the new Bitcoin Whales of 2020.
Due to lack of financial education, low prices are where fear reigns most in the smallest of the market, while the big ones know very well that one of the main rules to get a good return on their assets is to buy cheap and sell expensive.
Main technical factors to know Bitcoin Price Prediction in 2020
The overall Bitcoin performance curve has been permanently strong. As a clear sample we have the moving average of 200 periods, this indicator worked as an excellent support during the last bearish rally.
In addition to going quite close to the marked trend line; It is not surprising that it will once again serve as support at the end of the expected bearish momentum.
Moving averages are excellent helpers to visualize the current and general trend in any type of graph, Bitcoin is no exception. The fastest moving averages that I use in my graphics (an 8 period SMA and an 18 EMA) have also been cleanly respected by Bitcoin.
In the image below I show you how each time the SMA and the EMA have been crossed in the weekly chart the impulses have been quite significant; In addition to serving as mobile supports.
We are currently facing a new crossing of moving averages, which supports my projection of a bearish momentum for bitcoin price prediction in 2019, before a bullish one starts for the following year.
Moving averages seen from the weekly BTCUSD chart. SMA of 200 periods in black, SMA of 18 periods in red and EMA of 8 periods in blue.
A good first buy signal for 2020 is a crossing of moving averages in favor of an upward movement in the weekly temporarily.
My expectations for the coming year 2020 are quite positive for Bitcoin price prediction. Probably my 1st goal of $ 13,850 falls short; A breakdown of that resistance will take you to a next one located at $ 16,150.
Fundamental factors that will boost the price of Bitcoin in 2020
The current economic situation of the entire world is giving us constant indications of a possible near recession. The need for a decentralized currency is growing, while Bitcoin is on the table increasingly forging its qualities to be the best refuge value of humanity, probably displacing gold.
It is certainly too early to say that this will happen like this, but the odds are in favor of this situation happening.
Bitcoin has the largest community of active developers of the crypto ecosystem. Your blockchain is getting safer. Bitcoin shortage increases with each mine block.
In order for Bitcoin to fail it would have to disappear completely. With more than 10 years of continuous development and with more than 65% of the total capitalization of the cryptocurrency market it is practically impossible for this to happen.
2020 will be the year where the 3rd Bitcoin Halving occurs. This means that the reward for each mined block and the amount of coins to be mined will be halved; situation that will cause an even greater decrease in supply.
Between 1 and 2 years before the 1st and 2nd halving happened, a situation quite similar to the current one was observed, a setback with a high probability of provoking a new moderate upward momentum.
And just at the beginning of Halving a price increase begins that increases its volume with the passing of the months, an increase that in both occasions led to historical maximums.
The scenario regarding Halving is really positive for Bitcoin price prediction; the repetition of the facts increases the probability that we will witness a new historical maximum within a short time.
In another article I will be making a broader compilation of the fundamental aspects that could positively influence the Bitcoin price prediction.
This article would be very extensive if we continue with this topic here, but I assure you that it is important information that you should know, so I invite you to be aware of our next publications.
Finally, it is necessary to note that these articles are for informational projections only; We are not financial advisors. We are not responsible for the risk involved in making investments based on the information provided.
An interesting discussion. I really liked the Info graphic about the 1st and 2nd halving of bitcoin.