Bitcoin
Why Bitcoin (BTC) Will Go Back to $20,000
The crypto space has entered a period of recovery, as the year-long crypto winter finally ended. However, many in the crypto community are now wondering what will come next? What will happen with Bitcoin?
According to some, the coin will continue its slow and steady growth, while others are hoping to a sudden surge that will take it back to the old heights, and beyond. The coin itself surged by as much as 7.60% on Friday, currently sitting at $5,794.14. The highest point that BTC has reached in 2019 is only $2 higher than the current price.
In other words, the coin is currently going through an astounding recovery, thus somewhat confirming some investors’ belief that it will, in fact, surge back to the old heights. However, there are other factors that might be taken as a confirmation that BTC is on its way back to $20,000.
Bitcoin moving averages are similar to those in 2015
It is no secret that there are many who remain quite bullish on BTC, with claims that the coin could reach $1 million in a few short years. However, while such predictions are still being taken with a grain of salt, others, such as the one made by Peter Brandt, are much more realistic. The Factor Trading author believes that BTC might approach the price of $19,800 relatively soon, and he based this prediction on the weekly moving average indicator.
He noted that Bitcoin’s performance looks very similar to the one in November 2015, which allowed the coin to reach $20,000 within two short years. Brandt is not alone in thinking that BTC is on its way to former glory, as Fundstrat’s technical strategist, Robert Sluymer believes the same. A similar prediction was made by Fundstrat’s co-founder, Thomas Lee, as well.
The new price move closed the coin’s price above its 50-weekly moving average, which usually announces a strong potential for a massive bull run.
Bullish relative strength index
Another indicator of a future rally is Bitcoin’s weekly Relative Strength Indicator, which increased to reach and exceed 53.65, making it the highest since late 2015. The move impacted the buying sentiment significantly, as opposed to the selling pressure that came in January 2018 when the RSI dropped below this mark.
The Golden Cross
Finally, there is the matter of a so-called ‘Golden Cross,’ which is made when the short-term moving average of a particular asset goes above its long-term moving average. Bitcoin has seen several Golden Crosses during its decade-long history, one of which occurred back in October 2015, similarly to other indicators.
As we now know, seeing the combination of these signs and signals in 2015 meant a massive rally in the future. It took the coin two years to do it back then, but the situation is much different these days, and the rally might arrive much faster this time. When these signs appeared in 2015, the BTC price was at $300. Two years later, it reached $20,000. This was considered to be one of the longest bullish periods ever, and now — it appears that the history is repeating itself.
It is difficult, if not impossible, to accurately predict what the coin might do, especially in the long-term. However, all signs of a new massive bull run are here already, and all that remains is to patiently wait and see whether or not the price will act upon them.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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