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'Bitcoin on Track for USD 100,000 in 2025' - Bloomberg Intelligence 101
Source: Adobe/Soloviova Liudmyla

By 2025, bitcoin (BTC) still could add another zero to its price, according to Bloomberg Intelligence, while they also claim that it’s possible for the price to get closer USD 14,000 again already this year.

In their latest Crypto Outlook, Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, wrote that “bitcoin has a history of adding zeroes.” Bitcoin’s price could continue appreciating on the back of increasing adoption, as it has done so far, but this would happen at a slower pace.

Still, by 2025, we could see bitcoin reach those previously predicted highs. The report explained that,

“The first-born crypto has had a tendency to add zeros to its price from around [USD] 10 in 2011. It took about four years to go from [USD] 1,000 to [USD] 10,000 in 2017, so doubling that time frame for maturation could get the price toward [USD] 100,000 in about five more years.”

Failure is also an option, added the report, and it can’t be known what specific catalyst might prompt bitcoin to jump to the said new highs, however, demand vs. supply metrics remain price-positive. “Most demand and adoption measures indicate bitcoin is more likely to stay on its upward path,” McGlone said.

Bitcoin price chart:

'Bitcoin on Track for USD 100,000 in 2025' - Bloomberg Intelligence 102

BTC’s history is relevant, because it could be seen as an indicator that its “foundation is firming for further price advances.” After the price hit USD 1,000 in 2013, it corrected some 80% and consolidated. Four years later, it added a zero. Then after it hit USD 10,000, the benchmark crypto corrected about 70%, and it remains in an extended period of consolidation around that level, said the report.

If it happens that BTC “echoes its past gains,” and taking “normal maturation” into account, “about double the time period it took to add a zero to [USD] 1,000 could get its price to [USD] 100,000 in 2025” – or – “about double the time frame from [USD] 1,000 to [USD] 10,000 would come in around 2025, for bitcoin to potentially add another zero.”

Furthermore, speaking of the demand indicators, the report found that some of the leading ones show that it’s possible for the price to revisit its 2019 high, when it went up almost to USD 14,000 – and it could happen this year.

At pixel time (09:41 UTC), BTC trades at USD 11,288 and is almost unchanged in a day. The price is up by almost 4% in a week and a month. In the past 12 months, it jumped by 40%.

Other findings in the report include that:

  • BTC’s tendency to continue rising can be seen particularly against the broader crypto market, and “something needs to go wrong for bitcoin and right for the about 7,200 alt-coins for this disparity not to continue.”
  • This March, bitcoin’s price revisited the level when it first matched the Nasdaq index value in October 2017, almost doubling since, with volatility declining for the crypto and rising for the stock market.
  • Bitcoin market is too small for many large institutions to add BTC as part of their holdings, but if the market capitalization increases, it will increasingly be like a digital version of gold.
  • In 2021, if the trends remain the same, we can expect BTC in the first, and tether (USDT) in the second place, as the market capitalization of tether may surpass that of ethereum (ETH).
  • “Increasing adoption of stable coins is likely a precursor for central bank digital currencies and promises to be more enduring than alt-coin speculative excesses,” concluded the report.


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Sead Fadilpašić , 2020-10-16 11:49:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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