The Bullish Case for Bitcoin in 2020
Throughout 2018 and 2019, Bitcoin found itself in a prolonged bear market that saw price drop as low as $3000/coin. In mid-2019, there was some brief hope of relief, with a huge price surge to $14,000, but this turned out to be nothing more than a bear market rally. The 2nd leg of this bear market has been brutal, with no end seemingly in sight.
Then came December. In December, we saw Bitcoin print $6,500, accompanied by miner capitulation and a downward difficulty adjustment. This situation is not unusual for Bitcoin, previous bull cycles have also been preceded by a miner capitulation event and difficulty bottom prior to halvings (the next Bitcoin halving is in May of this year). In fact, Bitcoin’s price history is unmistakably predictable if you look at many of these widely-known events that are programmed into the Bitcoin software itself.
Price is currently around $8000, and I predict we test and possibly surpass that 2019 high of $14,000 in 2020. Thru 2021, I expect Bitcoin to reach a price between $88,000 and $100,000 per coin.
Every day that Bitcoin is still around is another day the network grows, becomes more mature, and markets mature as well with the network.
Bitcoin is akin to digital gold, and gold’s market cap is in the trillions. Bitcoin would only need to take a small fraction of market share from gold to reach $88,000 per coin. We shall see. Full disclosure: I own Bitcoin and am bullish on the asset indefinitely.
You should always consider seeking financial advice from a licensed advisor before making decisions with your money, and you should not consider anything I write as financial advice but merely my opinion. Getting your financial house in order is a prerequisite for Bitcoin saving, in my opinion.
Disclosure: nothing in this article should be considered financial advice and I am not a financial advisor. Do your own research as everything in finance carries risk.