Bitcoin is not only the largest digital asset in the crypto market by market cap, it’s also one of the most profitable as it has been returning consistent profits for its hodlers and investors over the years. The asset’s popularity also ensures that it’s consistently being talked about, with various price predictions and analysis posited by several analysts and strategists. One of such from Bloomberg shows that Bitcoin’s near future isn’t looking very great.
Bitcoin at press time is trading just a bit over $7,346, losing an average of 1.84% over the last 24 hours. While some volatility is generally expected with trading, the Bloomberg report has pointed out that the coin is in a continuous bearish pattern and investors are waiting and hoping for its next potential breakout.
Bitcoin’s current support level is said to sit somewhere around $6,500 and even though the asset is still a reasonable distance away from that, it has been pointed out that the current bearish pattern is similar to the pattern formed a few months ago in June when Bitcoin traded above $13,850, its high point for 2019. This could mean that Bitcoin just might be ready for the breakout the entire crypto market is eagerly waiting for.
Worth considering also is Bitcoin’s upcoming halving expected in May 2020. At each halving, block rewards for miners are cut down by 50% reducing the rate of supply which creates some scarcity. Scarcity of anything in most markets usually forces prices to shoot up and this has happened twice in Bitcoin’s decade-long history. The first halving eventually saw Bitcoin climb by 100% and the second one caused a 33% increase. Regardless, not everyone believes that the halvings will keep being the price catalyst it’s expected to be. A recent poll by Grayscale asked whether or not the Bitcoin halving has already been factored into the market and 27% answered ‘Yes.’
In addition to positive forecasts, one analyst has suggested Bitcoin’s logarithmic growth curve as a possible reason for really bullish predictions. According to @davethewave’s Twitter post, this curve – that seems to be an underlying constant in Bitcoin’s price movements over the years – puts Bitcoin’s at $70,000 by March 2024, more than three times above its current all-time high. By September 2028, the prediction puts the king coin at $170,000. The stock-to flow ratio also looks bullish for the May halving next year as it points to $55,000 post-halving.
It might be important to note that there’s a general positivity and bullishness among analysts, that seems to carry on in the market every time. Many market players either out of careful analysis or hopeful thinking almost always believe that the only way for Bitcoin to go is up. However, the same volatility that is banked on for interesting bullish predictions throughout the year could also be the ingredient that causes prices to plummet. There have been several occasions where the market defies predictions and there’s the ever-present possibility that this could very well happen again.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
