Bitcoin has rallied by 5.47% in the past 24 hours. The cryptocurrency has rallied from $7,209 to $7,603 in a single day. The sentiments of buyers are getting bullish with every candle on the seven-day chart, however, I am predicting a drop to the $5K level in the first two weeks of January if a sell-off is triggered.
While there is ample support at the $6K level, a drop is entirely feasible once the price starts plummeting. Prices are currently up 5.47% however, experts have predicted that prices may plummet by 20 to 25% and hit ultimate bottom.
Bitcoin visionaries like Jacob Canfield have predicted that current prices are near the bottom and there may be a 20% dip to the $5K level if the market loses its momentum.
A rally, on the other hand, may take prices beyond the ATH of $14K. The trading volume and number of transactions on the network have almost doubled in 2019 and the currency is currently trading in a less volatile and mature market. Taking into consideration Bitcoin’s upcoming halving, there is a high chance that the coin will gain $5 to $6K within two weeks or less.
The cryptocurrency is poised to gain in double digits once 2020 is ushered in.
Market maturity coupled with liquidity and widespread market uncertainty, coupled with liquidity injections by the Federal Reserve and other central banks, seemingly weakening fiat currencies against harder assets.
Bitcoin’s limited supply will drive up the value, and a buying trend will takeover the first two weeks of January 2020. This will help Bitcoin, as it has been labelled as digital gold, by many investors. The volume and increase in adoption will boost Bitcoin’s price and position and build the perfect situation and premise for a fixed supply cap in the market. Institutions and governments alike have started working on digital currency projects and picked up speed on cryptocurrency and IEO regulations.
This creates the perfect environment for the cryptocurrency industry to boom. Bitcoin is winning the adoption race among other crypto assets and is becoming increasingly scarce, and fundamentals can never go wrong. Bitcoin was created with strong fundamentals to favor price appreciation and though most projects launched in competition with Bitcoin may fail, until basics change or the network gets compromised, there is a high chance that Bitcoin’s price will appreciate even if other assets depreciate.
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