Can Bitcoin reach $50,000? Find out what experts think about it, and which aspects will drive BTC price to the moon-
The world’s number one cryptocurrency, Bitcoin has a lot of ardent supporters. It’s not a secret that some IT and crypto experts are very bullish about BTC: they make crazy predictions some of which actualize. What do you think will happen to Bitcoin in the nearest year? Let’s read about one bullish Bitcoin price prediction and try to figure out whether it will come true.
Do you believe that Bitcoin will cost $50,000 by 2021? If not, this post might change your mind.
$50,000 And More Optimistic Price Predictions: Who Makes Them?
We have already seen Bitcoin’s all-time high $19,783.06 on December 17, 2017. So who said it’s not possible to reach the new height again? There are a few experts who do believe in BTC’s potential:
- In his recent interview to Express.co.uk, Joseph Denne, CEO, and founder of Edge Network expressed that we’re likely to see Bitcoin’s new all-time high within the next 12-24 months. How does he explain that? Bitcoin has a well-established underlying technology, so it’s more or less sound; the hash rate is high as never before, and generally we have administrative clearness in some countries, and the ecosystem is growing with BTC being introduced to everyday life.
- Simon Peters, the analyst at eToro, also notes that the level of adoption is the key aspect which shows whether BTC is able to reach a $50,000 level. Generally, it’s possible.
- Tom Lee from Fundstrat believes that BTC can reach $36,000 in 2019 already.
- Bobby Lee says that by the end of 2021, BTC will cost its maximum – $333,000
- In April 2018, Mark Yusko claimed that BTC will reach $75,000 by 2020.
- Jim Blasko (founder of Bitcoin Talk Radio) said that BTC will cost somewhere between $100,000-200,000 by the end of 2020.
- Mike Novogratz and Sonny Singh claim that BTC should reach $20,000 in 2019.
We all remember McAfee’s post about BTC reaching $1 mln. He doesn’t seem to change his mind.
As you see, the Bitcoin price prediction of $50,000 is not the craziest one.
However, the rise won’t happen out of nowhere. What exactly should happen for BTC to reach such heights?
Aspects that will make BTC price soar
Getting back to Simon Peter’s interview, let’s outline the aspects he said would contribute to Bitcoin’s major growth:
- Engagement of mainstream audiences;
- Introduction of Bitcoin futures and ETF on stocks;
- More institutional investors;
- Further advances on the technological side.
What else should drive Bitcoin’s growth?
1. 21 million Bitcoins – the amount is strictly limited
A total of 21 million coins will be mined, 16.8 million already received, about 4 million lost forever. The first of these was added on January 3rd, 2009. The limited number and difficulty of mining, which is constantly increasing, affects the growth of the coin rate and the difficulty of obtaining it.
2. BTC is a pioneer: it has the greatest impact on society
The main advantage of Bitcoin over other digital money is that it became the first cryptocurrency, received attention from investors and the press, various companies were created to trade and support it. Many people have tried to capitalize on the popularity of the coin. Because of this, the BTC rate increased significantly in 2017.
3. Fear of missing out
In 2017, the exchange rate increased by 1,500%. People began to appear who earned a fortune solely on the fact that they acquired Bitcoin on time. This has created a fear of not having time to make a profit from the growing cryptocurrency rate. They invest in a coin, thereby giving rise to a demand for a limited number of coins, so the rate is growing.
4. Lost keys
A large number of Bitcoins remained on discarded computers, locked wallets and lost hard drives. Currency holders, which in one way or another take it out of circulation, reduce supply, but demand remains the same – value increases.
5. Large investment funds begin to trust Bitcoin
The largest Chicago options exchange CBOE and the largest North American market of financial derivatives CME at the end of last year launched offers to trade the first cryptocurrency. Goldman Sachs, a large investment bank, recognized Bitcoin as real money. This makes investors feel comfortable when they make contributions, because of this the value of the coin begins to grow.
6. Mining is getting more complicated and more expensive
Bitcoin mining is designed so that the more coins are created, the more difficult it is to mine the following. It is produced on computers, so it begins to require more processing power. This leads to high system and energy costs. In the event that costs increase significantly, mining will not be so profitable, this will cause a slight delay in the supply of new coins, which again will limit the supply and, with equal demand, will cause an increase in value.
Many Bitcoin holders keep it and are in no hurry to part with it, however, they can still sell their coins when the value reaches a certain level. One way or another, this also reduces the number of coins that are in circulation, the price rises, as the number of BTC decreases.
8. Secure currency
The US dollar is considered the most reliable currency in the world because it has support from the US government. Bitcoin has become such a currency for countries like Zimbabwe or Venezuela, where citizens do not trust the state system. This improves the reputation of cryptocurrency, more and more people invest in it.
All in all, if Bitcoin is not a bubble, it has to grow further. There are a huge number of factors that contribute to its popularization and wide adoption. Even if BTC doesn’t reach $50,000 in a year, it’s certainly an investment that makes sense!
Bears Continue To Gain Momentum In Bitcoin – Are We About To Collapse?
- Bitcoin saw a 6% price fall over the past week, bringing the price of the coin down to $9,613.
- It is finding support at the short term .382 Fibonacci Retracement level, however, it certainly looks like the momentum is on the side of the bears at this moment in time.
Bitcoin has been falling ever since meeting resistance at the $10,400 level this past week. During the week, tt found support at around $9,600, however, it was unable to overcome the resistance at $10,190, causing it to drop and fall once again.
Things are now looking troublesome for Bitcoin after not being able to make any movement higher over the past few days. Despite all the latest price falls, Bitcoin remains up by a total of 11% over the past 30-days of trading.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Taking a look at the daily chart above, we can see that Bitcoin has found support at the .382 Fib Retracement, priced at $9,569. During the week, it made a rebound and broke above the $10,000 level again, however, it was unable to break above $10,190 (previous 1.414 Fib Extension) which caused it to reverse and rollover.
Short term prediction: BULLISH
The cryptocurrency remains bullish, however, it is very close to becoming neutral. If it drops beneath the $9,000 level, we can consider the market as neutral. It would need to drop beneath $8,200 before we could consider it to be in danger of turning bearish.
Toward the downside, if the sellers break beneath $9,569 the next level of support lies at $9,311 (.5 Fib Retracement). Beneath this, support lies at $9,159 (downside 1.272 Fib Extension), $9,053 (.618 Fib Retracement), and $9,000.
On the other hand, if the buyers rebound here and push higher, resistance lies at $9,815 and $10,000. Above this, additional resistance lies at $10,190 (1.414 Fib Extension), $10,474 (1.618 Fib Extension) and $10,500.
The RSI dipped beneath the 50 level and remained there for the longest period during 2020. If the RSI is unable to climb back above 50 pretty soon, we can expect the moment to shift and for the bears to regain control.
Support: $9,569, $9,311, $9,280, $9,200, $9,169, $9,053, $9,000.
Resistance: $9,637, $9,615, $9,815, $10,000, $10,190, $10,360, $10,474.
Bitcoin (BTC/USD) forecast and analysis on February 22, 2020
Cryptocurrency Bitcoin (BTC/USD) is trading at 9746. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Bitcoin. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator stripes.
Bitcoin (BTC/USD) forecast and analysis on February 22, 2020
As part of the Bitcoin exchange rate forecast, a test of the level of 9910 is expected. Where can we expect an attempt to continue the fall of BTC/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 9180. The conservative area for Bitcoin sales is located near the upper border of the Bollinger Bands indicator strip at the level of 10300.
Cancellation of the option to continue the depreciation of Bitcoin will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing of quotations of the pair above the area of 10320. This will indicate a change in the current trend in favor of the bullish for BTC/USD. In the event of a breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.
Bitcoin (BTC/USD) forecast and analysis on February 22, 2020 implies a test level of 9910. Further, it is expected to continue falling to the area below the level of 9180. The conservative sales area is near the area of 10300. The breakdown of the cryptocurrency fall option will be the breakdown of the level of 10320. In this case, we should expect further growth.
Analyst Claims Whales Are Driving BTC Price Swings
Bitcoin has been experiencing heightened volatility over the past few weeks, and it’s likely due to the reemergence of whales according to one source.
The Whales Are Back in the Picture
Bitcoin whales are individuals who house several million dollars-worth of cryptocurrencies in their digital wallets. Often, they possess so much in a single account that the slightest maneuver of money could potentially cause the entire industry to suffer a shift of some kind. Usually, the cryptocurrency industry experiences heavy dips or meteoric rises. It all depends greatly on what gets moved and where.
Bitcoin, for the most part, has been relatively volatile since early January. The currency initially started out below the $7,000 mark, but ultimately spiked thanks to rising geopolitical tension between the United States and Iran, CME Group’s introduction of bitcoin futures options, and rising fears of the coronavirus in China.
However, bitcoin’s primary moments of volatility for 2020 have been mostly noticeable during the past week. The currency rose beyond the $10,000 mark, eventually hitting the $10,400 figure. It has since fallen by more than $900, with a few heavy spikes and drops interspersed in the middle (i.e. it was trading at $10,100 again roughly two days ago).
Some analysts are blaming whales yet again, and say they’ve increased their activity over the last seven days to ultimately cause bitcoin to move about like a vast ship during stormy weather.
Right now, we’ve witnessed a repeat of what allegedly occurred during the final four months of last year. Between September and December of 2019, the number of active whales in the crypto space rose from approximately 2,000 to about 2,030.
This was during what Ashish Singhal – co-founder and CEO of CRUX Pay and CoinSwitch.co – calls an accumulation phase, in which whales are no longer sitting around watching the crypto space with eagle eyes, but rather taking an active part in the industry and getting their hands on digital funds.
During the accumulation phase, whales eat into market liquidity. That affects the supply-demand ratio and causes volatility to re-enter the market.
The accumulation phase isn’t necessarily a problem all by itself. Analysts like Connor Abendschein – a crypto researcher at Digital Assets Data – claim the main issue is that it’s very hard to predict how long such a period will last, which tends to lead to heavy uncertainty within the industry.
How Long Is This Going to Last?
e problem is that it is difficult to predict how long these periods of accumulation for HODLers will last… If the whales shift to accumulating bitcoin while HODLers are still within their current phase, it suggests an additional increase in demand for BTC at near the same as the mining supply is scheduled to be cut in half in early May.