Bitcoin price action has been boring as of late. However, a trader believes that this will change for crypto in 2020. Other analysts agree.
With the exception of a brutal pump and dump on Wednesday, the price action of bitcoin has been far from exciting over the last few weeks. Since the end of October, the number one cryptocurrency has lost nearly 30% of its value. The slow bleed with a couple of dead cat bounces have frustrated both the bulls and the bears.
It’s almost the same story for other cryptocurrencies. Sure, a handful of gems or small market cap cryptos have popped but the majors have been disappointing. After a strong first half of 2019, many coins such as Litecoin (LTC/USD) and Ethereum (ETH/USD) have succumbed to profit-taking.
Nevertheless, one widely-followed trader named Bitcoin Macro claims that 2020 will not be the same. It would be a year that changes people’s lives.
2019 has been a difficult year for most HODLers. Early this year, bitcoin showed tremendous strength as it climbed from $3,000 to about $14,000. Unfortunately, the bulls couldn’t sustain the ascent. The force of gravity sucked the dominant cryptocurrency back to Earth.
But bitcoin wasn’t going down alone. The number one cryptocurrency took most of the altcoins down with it.
According to Bitcoin Macro, the time for accumulation is almost over. 2020 is the year when crypto would finally wake up. When it does, lives would be changed.
I asked around to see if other prominent Crypto Twitter (CT) analysts share the same sentiment. I was surprised to hear that some traders are bullish on bitcoin. They believe that the largest cryptocurrency will launch a bull run next year.
Elliottician Benjamin Blunts believes that bitcoin will finally bottom out next year. The analyst told CCN,
I think it is likely we do see a bottom in bitcoin next year, probably around the $6,000 level.
The trader added,
However, a bull trap back up to $8,000 first seems logical.
Nick Hellman, vice-president of LearnCrypto.io, echoes the sentiments of Blunts. The analyst also sees the top cryptocurrency plunging to the low of $6,000 first before printing a new all-time high next year. He said,
There is no doubt in my mind that 2020 will be the year of bitcoin and new all-time high!
Scott Melker, AKA The Wolf of All Streets, also believes that the bulls will control 2020. But the analyst doesn’t share Nick Hellman’s energy and optimism. Scott Melker told CCN,
[Bitcoin will start] a new bull market, but I can’t predict the future.
In cryptocurrency, bitcoin is the tide that lifts or drowns boats. Where the number one crypto goes, virtually all cryptocurrencies follow. If the top cryptocurrency has a bullish 2020, I expect other coins such as Ethereum and Litecoin to follow suit.
The chart above shows that other large cap coins such as Ethereum, Litecoin, Ripple, Binance Coin, Bitcoin Cash, EOS, and BSV have a Spearman score that’s between 0.6 and 0.8. In other words, these coins have a strong positive correlation with bitcoin. This means that bitcoin’s momentum can dictate the trend of these coins.
If Bitcoin Macro’s predictions are correct, 2020 would indeed be a mind-blowing year for crypto.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.
Last modified: January 22, 2020 11:41 PM UTC