The Bitcoin Price Forecast For 2020
Price Forecast Bitcoin: Will A New Bull Market Begin In 2020
The price of Bitcoin has not been holding up well over the past few months. The world’s leading cryptocurrency posted a stellar rally in the first half of the year and done nothing but move lower in the time since. Now, with the New Year just around the corner, it’s time to take a look at what Bitcoin is expected to do next year.
Bitcoin Dominance Rises
Bitcoin dominance, or the market share Bitcoin commands, is one the most telling indicators of BTC strength. While BTCs dominance plummeted in 2017 and 2018 with the rise of altcoins and ICOs it has steadily been on the rise since bottoming. This year, BTCs dominance hit a two-year high and shows no signs of stopping. What traders can infer from this data is that 1) Bitcoin is still the most popular and widely held cryptocurrency and 2) all (most) others cryptos are losing ground to it.
Bitcoin Hashrate Hits New All-Time High
The Bitcoin Hashrate, the measure of computing power assigned to Bitcoin mining, is another telling indicator of Bitcoin’s future price direction. The hashrate began an exponential acceleration in 2017 and, it too, shows no signs of slowing. Over the past year miners have been turning on new machines and turning their own machines to Bitcoin at an even faster pace. What this means is also two-fold. 1) Bitcoin is the most supported network on the planet and the one investors can trust most. 2) miners are putting a lot of faith in an expected price increase, if they weren’t they’d switch to some other crypto.
The Catalyst That Will Drive Prices HigherÂ
Bitcoin’s halvening is still the most critical catalyst that I see at this time. The halvening is when Bitcoin’s mining reward is cut in half, a move that will prolong BTC’s life as a POW blockchain by seriously limiting the number of BTCs created each day. What this does for the miners is make BTC twice as expensive to mine, a fact that will support underlying prices. The most recent halving occurred in Litecoin, Litecoin prices rose 400% because of it. If BTC makes even half that move, a gain of 200% from today’s prices, that would put the coin at $$22,500 each, a new all-time high.
The Bitcoin Price Forecast For 2020 Is:
The Bitcoin price forecast for 2020 is higher prices. The coin is supported fundamentally by its dominance and hash-rate and has a major catalyst in sight. The question now is, how high will BTC go in 2020 and how long will it stay there? Based on the LTC halvening there is a real chance the coin could surge, hit a peak coincident with the halvening, and then fall back to previous support levels. Let’s take a look at the chart.
Bitcoin has been in downtrend since late June. The coin hit one support level before and bounced but the price move didn’t hold, new lows were set. Now the coin is sitting at another potential support level and looking more bullish than it did with the first test of support. The indicators, both MACD and stochastic, are consistent with a rebound in prices and showing a strong-ish buy signal. MACD has not yet fired a bullish crossover but is showing a clear divergence from the new low, consistent with support and set up for a swing in momentum. Stochastic is firing a bullish signal, if and when MACD confirms that signal a solid move up should occur.
The first target for resistance is near $7750, just above today’s trading levels, so a break above there would be significant. Once that level is surpassed the next target is near $10,000 and the October high. If prices are able to retest and break above that level the next target is $12,000. If (when) $12,000 breaks we can expect a very quick move up to $20,000 as the FOMO traders start to flood in. If this all happens before the halvening a move to new all-time highs becomes very likely in 2020.