For a couple of months in 2017 Bitcoin went viral and every retail trader was making money. But since the heyday of the crypto boom, BTC has given the retail trader a few more gray hairs.
Gone are the moon boys. Gone are the lambos. Gone is Average Joe hoping to make a quick buck. A lot of people lost a lot of money. A few made millions.
A decline in price from $20000 back to $3000 in 2018 even got many of the firm believers shaken out.
Granted, a 85% sell-off wouldn’t leave anyone with much confidence in an asset without real worldwide adoption.
However. Are thing about to change? Is there renewed optimism that a bottom has been found?
Let’s look into the details.
After a tumultuous 2018 and latter part of 2019, BTC is looking for a turnaround in 2020.
An extraordinary move out of nowhere from $3000 to $13000 turned doubters into believers, once again. But a further kick-on to all-time highs at $20000 was non-existent. This move was related to (yet) another Ponzi-scheme, PlusToken.
Once this gig was up, so was the price. From a high in 2019 of $13000, it sold off back to just under $7000.
This is where it gets interesting.
Is this support level the monthly higher low?
Most investors would hope so. Many technical analysts believe so. If it is, BTC can be set for a break-out in 2020 and possibly another higher-high.
A different option is a monthly lower high for a tightening pattern and a future boom in 1-2 years time.
Unlike altcoins, Bitcoin lead a life on its own. The currency is a bubble that has a tendency to pop in cycles in both directions.
If that is the case again, the odds favour a more bullish trend in 2020, with a price of $7000 to $6000 as the new support level.
A jump in price to previous resistance level close to $13000 is realistic. A move to $1m like John Mcafee predicted is unrealistic and Alice in Wonderland numbers.
In fact, a move to around $13000 will double the price from where it is today, and will set BTC up nicely for a future break-out.
A drop below $6000 is concerning, but not disastrous as it would still be looking for a monthly higher low as long as price is above $3000.
With all the rubble that was scams, Ponzi’s, pyramids and other crypto related shenanigans left behind us in the past decade, there is hope for a bullish BTC coin in 2020 and beyond.
The resistance level of $13000 to $14000 will be interesting to watch. If this levels breaks, $20000 could come quicker than you think.
On the other hand, a drop to below $6000 will probably initiate another sell-off, with all eyes on $3000.
In 2020, pay attention to Bitcoins weekly and monthly levels. This can be a year of significant upside with a few surprises.