Will Bitcoin price continue to increase in the upcoming years?

Mohamed
Mohamed
Nov 3 · 3 min read

Bitcoin is increasingly becoming a popular investment asset for many people. However, the majority of the newcomers do not know the historical prices and movements that occurred since 2011. This article will focus on answering four questions to provide those people a brief history and patterns in bitcoin price movements:

1- Is Bitcoin price likely to increase or decrease in the coming years?

2- How is the trading volume during the Weekends versus Weekday?

3- Which date had the most trading volume, and what happened during that day?

3- Which months during Bitcoin history achieved the highest cumulative Change percentage, and which one had the lowest one?

First of all, lets take a brief look at the overall historical chart and volume of Bitcoin according to the extracted daily data chart:

The chart shows that Bitcoin has been in steady stable increase from 2011, until it reached its peak in 16 Dec 2017 at around $19K. After that, it dumped hard to reach early 2018 bottom at $6K in 06 Feb 2018. During that day, the daily volume spiked it its all-time-high at around 100K btc.

This kept bitcoin at that range throughout 2018, until it broke that level and reached its lowest price at the end of the year, in 16 Dec 2018 at $3K. But here is the surprise: After that day, Bitcoin took off again and started its next uptrend to reach $14K in June 2019.

While the data shows that bitcoin will likely keep increasing, bitcoin is mostly manipulated and is very risky (Hence how coincidence for it to make its next uptrend move just after exactly 365 days (16 Dec 2017 to 16 Dec 2018).

Many traders suggest that Bitcoin trading volume is low during the weekends and exclude them from their analysis. Below chart examines these claims:

This scatter plot chart shows that while its true that most high volume days occurred during the weekdays, there are still few weekends where it made it much higher than the majority of weekdays. Therefore, it is not recommended for analysts to exclude weekends from their price analysis.

According to the Bitcoin historical data, there are months where it made its highest cumulative gains compared to other months. Below chart shows which month has the highest gains and which month has the lowest gains throughout Bitcoin history:

This shows that during the past years data, September usually gets the lowest gains compared to the other months, while November gets its highest gains.

In summary, the article concluded that Bitcoin charts indicates that it will increase in the coming year, The lowest trading volume occurred in 06 Feb 2018, the weekends low volume claims is a myth, and November has the highest overall gains compared to other months. However, it is worth to note that due to bitcoin price volatility and manipulation, trading cryptocurrencies is always risky and one cannot predict for sure the future of Bitcoin price movements. Therefore, always be careful if you decided to trade.

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