The Bitcoin news now show that analysts on Bloomberg are covering the topic of Bitcoin and estimating a target of $20,000 for the BTC price this year. These guys are the latest to jump on the bandwagon of experts who expect Bitcoin to revisit the record highs in 2020.
As a bold prediction by the team, this estimate is actually based on the fact that price action seen over the last 2.5 years looks very similar to the patterns over the 2.5 years after the leading cryptocurrency and its rise to record highs in December 2013.
The analysts on Bloomberg noted their examination in a monthly report, stating:
“After 2014’s 60% decline, by the end of 2016 the crypto matched the 2013 peak. Fast forward four years and the second year after the almost 75% decline in 2018. Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend.”
If we take a look at these patterns, we can immediately see something interesting. First on the list is the 2013 to 2017 direction of the BTC price, which the analysts on Bloomberg covered with a nice visual presentation.
They said that the BTC price printed a lifetime high above the $1,100 margin in early December 2013, and then fell by over 55% in 2014. However, the bear market ran was put to an end in January 2015 when Bitcoin turned higher in the fourth quarter of that year.
In the 2017 to present analysis, the analysts on Bloomberg examined how BTC topped $20,000 in mid-December 2017, and then fell by 75% in 2018. The cryptocurrency bottomed at $3,100 and the cryptonews then showed struggle for some time. Now, the macro factors show that “something needs to go really wrong for bitcoin to not appreciate,” as the analysts added in the note.
“This year is about increasingly favorable technical and fundamental underpinnings for bitcoin,” Bloomberg’s note said.
The analyst Kevin Rooke also spoke about the GBTC AUM trust and how it managed to accumulate coins 1.5x the amount mined since the May 11 halving.
Grayscale's Bitcoin Trust bought 18,910 Bitcoins since the halving.
Only 12,337 Bitcoins have been mined since the halving.
Wall Street wants Bitcoin, and they don't care what Goldman Sachs has to say. pic.twitter.com/Br6a4ijuze
— Kevin Rooke (@kerooke) May 27, 2020
This is how the analysts on Bloomberg see the BTC price in the following years, predicting a $20,000 mark this year alone. At press time, Bitcoin is changing hands near $9,500 and preparing to breach the $10,000 mark after some struggles overnight.
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