- Bitcoin magic phase has begun: $20,000 prediction is quite conservative.
- Bitcoin has the potential to beat its all-time high (ATH) marginally below $20,000 by the end of 2019
- BTC/USD to trigger its full-blown FOMO on breaking past $10,000 critical level.
- Introduction to Bitcoin
- Challenges facing Bitcoin
- Bitcoin prediction 2019/2020
- Top analysts/experts Bitcoin prediction
- Technical Analysis
- The future of Bitcoin
- Bitcoin price FAQs
Introduction to Bitcoin
Most of the world’s population has heard about Bitcoin in the last decade. Some have heard about its amazing features as digital cash and the revolution it is bringing to the financial sector while others have heard about Bitcoin negatively mainly from critics. However, many talks about Bitcoin without taking time to understand it and how it works. Bitcoin has been and still is the key to the global transformation of the financial system and the society at large. This article will attempt to introduce Bitcoin in the simplest way and help you understand the technology behind the cryptocurrency, the future of Bitcoin, as well as various experts’ take on the Bitcoin price prediction.
Bitcoin came to light following the global Financial crisis of 2008 with the aim of developing a better financial system for the global society without the interference of governments and financial institutions. Bitcoin is mostly referred to as digital cash that is not controlled by any single organization. It can be used to store value, transfer value, buy goods and services and require no permission from a third party. In many occasions, Bitcoin has been referred to as “Digital Gold”, however, contrary to physical gold Bitcoin is easily accessible, faster with more efficiency especially in terms of storage. Bitcoin is also divisible to the eight decimal places and operates like internet money or digital cash. Unlike fiat currencies, Bitcoin cannot be manipulated in addition to being a scarce commodity as only 21 million BTC can ever exist.
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Looking back, Bitcoin was created by an anonymous individual or group of people going by the pseudo name Satoshi Nakamoto. To date, the identity of Satoshi Nakamoto remains hidden but Bitcoin was the first cryptocurrency to be created following the original white paper published in 2009.
Since its inception, the Bitcoin network has never been hacked. This proves to the world that the Bitcoin protocol can stand the test of time. However, people have lost their Bitcoin due to exchange platforms being hacked. It is, therefore, important that you store your coins in the most secure form possible; preferably in cold wallet storage.
Bitcoin is just but the tip of the iceberg as the technology behind it, the blockchain is the real deal. Blockchain allowed people to alter Bitcoin’s code and come up with better cryptocurrency networks like Ethereum, Ripple, Bitcoin Cash, Litecoin among others. In addition to that, the blockchain technology is currently revolutionizing governance, big data, logistics, supply chain industries, the health industry, and even the education sector, etc.
In simpler terms, blockchain is a data record often called blocks that are linked to each other cryptographically. Every block has a cryptographic hash link to the previous block in a timestamp and transaction data. Blockchain was designed to be immutable and therefore resistant to modification making it the most secure way to transfer value without the interruption of third parties.
Challenges facing Bitcoin
As much Bitcoin is the revolution we have explored above, it still has a fair share of limitations starting with difficulty in making decisions due to its decentralized nature. This means that for a decision to be made it has to gain the support of most of the miners. Some upgrades require a permanent change in the code referred to as a hard fork. A hard fork on Bitcoin protocol would need at least 75% of all hashing power.
Secondly, Bitcoin transaction processing time has been a major challenge and continues to hinder mainstream adoption. Larger transaction time leads to higher transaction fees making the network expensive to operate. Initially, Bitcoin was created to support seven transactions per minute with blocks of 1 MB. There was a proposal to increase the block size, however, the proposal did not gain the traction needed to effect the changes. However, a patch referred to as SegWit was developed to allow developers to increase the network’s transaction capacity without altering the block size. Privacy is also a concern for many who would have wished their transactions to remain out of the public eye.
Bitcoin Prediction for 2019/2020
Bitcoin sustained extreme declines in 2018. It was a perfect example of ‘from rags to riches and then right back in the rugs.’ In the previous year, 2017 Bitcoin entered into a parabolic move that saw it ascend to unbelievable highs close to $20,000. However, high volatility and lack of support saw it trim the gains massively. There were attempts to recover along the year but as soon as $6,000 support was broken, Bitcoin spiraled to new 2018 lows around $3,146 in December 2018.
However, since the beginning of 2019 Bitcoin continues to hunt for its lost glory by breaking key barriers to the upside. The rise to highs close to $9,000 has had experts believing that Bitcoin not only found a bottom but also entered a new parabolic move that is going to take it to highs above $10,000.
Coingape predicts that Bitcoin has the potential to beat its all-time high (ATH) marginally below $20,000 by the end of 2019. Once the barrier at $10,000 has been cleared, Bitcoin bulls will have the opportunity to focus of levels close to $15,000 and eventually pull the price towards $20,000 and hit new highs at $23,500. Bitcoin is currently trading at $8,558 after defending key support around $7,500 in the last few days.
This ambitious prediction is supported by the current developments in the industry. There are many financial institutions like JPMorgan and Fidelity entering the crypto space to offer services related to digital assets. Moreover, giants like Facebook will be launching their own cryptos in 2020 while huge technology companies like AT&T have started accepting Bitcoin as a payment option. These are other incoming projects bound to create more demand and ease the adoption of cryptocurrencies and other digital assets, in turn, pushing the price higher.
Top Analysts/Experts’ Bitcoin Predictions
Bitcoin has finally entered a bull phase especially after touching highs above $9,000 for the first time in 2019. Various experts and analysts believe that the bull rally is just beginning and will not stop at $20,000. The CEO of Xapo Wences Casares who also sits on PayPal Board recently remarked saying that Bitcoin will increase 250X in the near future.
The founder of Fundstrat, a leading research firm and an ardent believer of Bitcoin has shown confidence in the ongoing bull rally. According to Lee, Bitcoin is steadily approaching the point of no return. The data from his firm, suggests that once BTC/USD hits $10,000 it will trigger its full-blown FOMO currently labeled as ‘Level 10’ FOMO; which represents the same value that has marked the beginning of Bitcoin parabolic move in the past.
The founder and CEO of Galaxy Digital recent prediction say that Bitcoin is going to consolidate its recent gains between $7,000 and $10,000. He also adds that the momentum could push the price to higher levels. Novogratz believes that mainstream adoption is the main driving force in the current bull rally. Developments in the sector and huge tech firms making entrances in the space are helping to validate Bitcoin and cryptocurrencies.
“On a go-forward basis, Bitcoin probably consolidates somewhere between $7,000 and $10,000. You know, trees don’t grow to the sky,” the chief executive officer of Galaxy Digital Holdings Ltd., said on a conference call Thursday discussing the company’s first-quarter financial results. “If I’m wrong on that, I think I’m wrong to the upside, that there’s enough excitement and momentum that it could carry through.”
The head of operations at OKEx cryptocurrency exchange recently said that Bitcoin rising to $20,000 is simply a conservative prediction.
“$20,000 is a conservative prediction for Bitcoin price in 2019, as I said last year,” he added “The rally won’t stop here, because more institutional investors are coming into the market and the 2020 halving effect starts to take place. We are thrilled to witness such bullish trend and I look forward to a new high the Bitcoin deserves. Bitcoin is not just a coin, but a spirit that hinders the crypto-industry.”
The co-founder and the CEO of BitMEX, a Bitcoin trading cryptocurrency exchange predicted in March that Bitcoin will touch $10,000 before the end of 2019. However, to him the bull rally was to commence in the fourth quarter of the year:
“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. […] $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”
Bitcoin Technical Analysis: 4-hour Range
The 4-hour chart for BTC/USD trading pair shows an asset that has spent most of the past five months of 2019 hunting for higher levels. April and May have been the most successful months so far with Bitcoin more than doubling its value in the sixty days. The journey to highs marginally above $9,000 has not been without up and downs. However, the resilience Bitcoin has been showing continues to prove to the investors that we are in the middle of a bull rally.
BTC/USD 4-hour chart
On breaking $9,000 level, Bitcoin formed a high at $9,086.93 (on Coinbase). The price reversed the trend downwards where it was unstoppable at $8,500 support. The price dipped below the 50 exponential moving average (EMA). Further declines broke the ascending trend support before finding support at the EMA100 close to $8,000.
A reversal from the vital support stepped above $8,500 but the upside was limited under $8,600. The MACD having retreated back into the positive zone shows that the bulls are gaining strength. Defending the EMA100 support meant that BTC had the potential to correct higher. However, the formation of a rising wedge pattern means that traders should be on the lookout for pullbacks. Correction above $9,000 will allow the buyers to focus on $10,000 in the medium-term.
Looking at the daily chart, we see Bitcoin having formed a double-top pattern after breaking above the $8,500 level. Which explains why a correction above $9,000 was unsustainable. Fortunately, support has been established at $8,000 but the traders are cautioned to be aware that volatility is still high and frequent dips are expected. Other key support areas include $7,000, $6,000 and even $5,000. On the brighter side, Bitcoin is still in a bullish mode with the MACD being almost horizontal at +589.49. Therefore, we can expect higher retracements while defending key support levels in the short-term.
The Future of Bitcoin – The Bigger Picture
Most Bitcoin enthusiasts and optimists would agree that Bitcoin has a brighter future in the world’s economy. Just after a decade of existence, the cryptocurrency industry has given various governments and central banks sleepless nights. Some like China and India have decided to choose the high road ban the digital assets altogether while countries like Japan, Malta, and Switzerland have decided to embrace the new asset class and make good out of it.
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Currently, there is excitement regarding the rally in April and May. Most investors are looking forward to BTC trading above $10,000 and inching closer to its all-time high. Meanwhile, mainstream adoption is on the rise with Bitcoin ATMs increasing in number worldwide. Institutional investors are reported to be buying more Bitcoin while leading banks and technology firms are planning to get involved with the crypto industry in one way or the other. Therefore, the future of Bitcoin is bright especially for those looking at the bigger picture.
Bitcoin Price Frequently Asked Questions:
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