Bitcoin price has increased by nearly 30%, many skyrocket price forecasts have begun to appear
Since the beginning of this year, the Bitcoin price has been booming and has grown by nearly 30%, rising from $ 7,000 to $ 9,250 in a few weeks. This increase seems to mark the end of the 50% downtrend, which has affected Bitcoin during the second half of 2019.
Bitcoin began to show signs of a trend reversal
Bitcoin’s daily trading chart has just demonstrated an essential technical signal: Today’s 50-day moving average has surpassed the 100-day moving average, creating a cross-formation. Over the past eight times, this technical signal has been visible since 2014.
— Brent (@blockchainblitz) February 5, 2020
This moving average cross was last spotted when Bitcoin was at $ 5,800 in early 2019 and before a 140% increase. Besides, 25 factors explain why Bitcoin can restart the upward trend.
- Bitcoin recently received monthly support of 21-month exponential moving averages, then closed above a 10-month exponential moving average.
- Bitcoin’s relative weekly strength index (RSI) has recently moved above the range of 55 key points; When the RSI is above 55, it is technically a bull market.
- Bitcoin has moved above the 200-day moving average.
At press time, the price of Bitcoin is fluctuating around $ 9,336, up slightly by 2% in the past 24 hours.
Many Bitcoin price predictions reappear
SmartContracter – a trader who successfully predicted Bitcoin’s $ 3,200 bottom in 2018 – thinks it’s highly likely that Bitcoin will break the $ 14,000 threshold by mid-2020, possibly sometime after the Halving takes place out in May 2020.
Tom Lee, co-founder of Fundstrat Global Advisors, also supports this view. In January, Bitcoin increased by 26% and also recovered its 200-day moving average.
“It’s a big deal as you know, as anyone following the trend knows – when you go back over 200 days, you will return to the bull market. Whenever Bitcoin comes back after 200 days, its average increase of six months is 197%.”
Last month, Lee said the event halving anyway is not the price of. At that time, before the moving average crossover, he said that he expected Bitcoin’s 2020 increase to reach 100%.
Despite these signs, not everyone believes that Bitcoin will continue higher from here.
The famous leading trader of Bitfinex, J0e007, suggested that the market trend was formed due to supply/demand imbalance and was supported by in-out and in-stream fiat. He asserted that Tether’s low market capitalization was hard to explain from a position we were in the middle of a new growth market, and Grayscale’s flow data does not convince him that there is sufficient demand to absorb the mining supply.
Bitcoin gained almost 30% in January before continuing its growth to reach a recent high of around $ 9,450. Like many others, we all believe Halving is a direct catalyst for Bitcoin price expansion. This event not only reduced the supply of new Bitcoin by 50% but also brought the inflation rate below the level of both gold and the Federal Reserve’s inflation target of 2%.
An accurate historical price prediction model Stock-to-Flow predicts a halving will trigger a rally to around $ 100,000 by the end of 2021.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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