It’s quite difficult to see the long-term bullish picture of bitcoin if the top cryptocurrency has been nothing but bearish lately. After a strong first half, the digital asset has shed over 46 percent from its 2019 high of $13,880. All of the bullish steam that bitcoin has mustered at the start of the year is gone. Many analysts are now calling for a massive bull capitulation to $5,800.
Regardless of the recent drop, the dominant cryptocurrency is still up by over 100 percent year-to-date. To long-term investors, that’s a winning asset. That’s why other analysts are predicting that brighter days are ahead for the largest cryptocurrency.
Even though the asset dubbed as digital gold is ending 2019 without a bang, executives in the cryptocurrency industry are positive that bitcoin will have a stronger 2020. For instance, Todd Butterfield, the owner of the Wyckoff Stock Market Institute, believes that bitcoin is still in a bull market despite the 46 percent drop. He told CCN.com.
I still think we are in the early stages of a bull market.
Robert Beadles, president of Monarch echoes Todd Butterfield’s sentiments. He believes that the highly anticipated halving will trigger a bullish rally. He said,
While the price of Bitcoin has been a bit of a disappointment in 2019, I think Bitcoin’s halving in May could spike the price. I expect to see Bitcoin reach $11,000 around this time. The communities that believe in Bitcoin will continue to HODL, regardless of price fluctuations, and by now it’s clear that Bitcoin has proven itself as a long-term investment and store of value.
John Karr, COO at SophisticatedInvestor.com, shares the view of Robert Beadles on the bullish impact of the halving on bitcoin’s price. He said,
The third Bitcoin halving will occur in May 2020…[the event] should trigger the beginning of a long bull market.
In addition to the halving, another catalyst for a strong bitcoin bull market is the possibility of a global downturn. John Karr told CCN.com that a recent poll revealed that economists are bracing for another financial crisis in 2021. He said,
72 percent of economists predict a financial crisis to hit the global economy by 2021.
According to Mr. Karr, the economies may start to show signs of weakness as early as next year. That’s bullish for the top cryptocurrency. Mr. Karr added,
People will flock to alternative assets like precious metals and cryptocurrencies, gold and bitcoin being the main targets.
The flight to alternative investments such as gold and bitcoin is something that Otavio Costa, portfolio manager at Crescat Capital, also sees. The analyst told CCN.com,
Gold and bitcoin should start moving more in tandem as investors seek ways to hedge against the risks of a full-blown global fiat debasement.
The portfolio manager added,
Bitcoin is potentially a way to bet on the eventuality of currency wars and rising inflation, and at a 45% price discount from 5 months ago, it looks like an attractive entry point.
It appears that the stars are aligning for the dominant cryptocurrency. The possibility of a deteriorating global economy and the reduction of supply due to the halving paint a bullish picture for bitcoin. It seems that brighter days may be ahead for the number one cryptocurrency.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: June 14, 2020 9:53 AM UTC