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A number of very accurate data so far indicate that Bitcoin will close 2020 at least 100 percent higher, which means an end-of-year price of over $ 14,000.
Why Bitcoin could end 2020 by 100% more expensive
An analyst named “Rptr45”, who specializes in analyzing Bitcoin’s historical trends, writes: BTC is currently in the middle of its second full price cycle, which it believes will take four years. The cycle is marked by a year of parabolic gains, a year of brutal bear market decline, a year of accumulation and expansion, then steady growth that precedes parabolic gains.
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Have been asked to expand on this. While we have such limited data during the 2 full cycles thus far we’ve seen comparable $ BTC performance in the 1,2, & 3 years pre-halving. Do we see similar performance yet again the year of and year post which would mean + 100% performance? https://t.co/lP1mF5HtVD pic.twitter.com/BLjPSmtR1T
– Rptr45 (@ Rptr45) January 3, 2020
At the moment, Bitcoin is in the year of steady growth, with an increase of 125.6 percent in the last cycle. This simple observation, along with the fact that Bitcoin has followed the direction of the previous cycle (2013-2016) this time, suggests one thing: that BTC closes at least over $ 10,000 this year – if not $ 16,500 if history repeats itself by the end of the year.
Is the story about the four-year cycle credible?
While the four-year cycle pointed out by the analyst may seem random at best, there are good fundamentals that confirm the existence of such long-term trends. Not to mention that crypto investors have a widespread view that Bitcoin is traded in clear four-year cycles.
In fact it happens Bitcoin so-called halving every four years – a recurring event in which the number of coins issued per block is halved. This corresponds to a 50 percent decline in the annual BTC inflation rate.
The first halving of Bitcoin took place in 2012, causing BTC to recover a little more than 100 percent. A breathtaking performance of 3447.9 percent followed in 2013. The second halving of Bitcoin took place in 2016, with the BTC registering an increase of 125.6 percent. In 2017 an annual performance of 1242.6 percent followed.
As you can see, there is a clear pattern: the year of halving is marked by the positive effects of the event on the market. Investors understandably see these at the forefront – and in the year after halving, the negative emissions shock caused Bitcoin to rise to new all-time highs due to the dynamics of supply and demand in this market. These are best illustrated by the “Stock to Flow” price model from PlanB.
Other analysts expect the bull run to return
Although the above data can easily be dismissed as a coincidence, other prominent analysts also expect Bitcoin to resume its bull run at new all-time highs in 2020.
According to on-chain analyst Willy Woo, there are clear signs that Bitcoin is definitely not in a bear market.
Rather, the indicators would indicate that BTC is in the middle of a “rebuilding phase” of the bull markets. This is followed by a top rally that brings Bitcoin up a order or two.
Are we in a $ BTC bear market?
No, we are in the re-accumulation phase of a bull market. pic.twitter.com/OcMyxA4EIY
– Willy Woo (@woonomic) December 28, 2019
This suggests that bitcoin will break out higher by the second half of 2020 and will likely hit new all-time highs a few months or a year later.
Dave the Wave – a pseudonymous but incredibly precise cryptocurrency analyst – comments: Bitcoin is likely to bottom in the near future (if it hasn’t already) and will soon start a trend that will bring it to $ 25,000 by early 2021 – So 270 percent higher than the current prices.
Text credit: crypto late
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