BTC 2020 Forecasts — The Roller coaster or a Bull Market?

Unfortunately, the festive mood at the end of the year did not come to the crypto world. Still, due to a higher price at the start of the new year (in comparison with December 2019), traders had the opportunity to have profitable deals. Why did BTC jump so unexpectedly? The reasons are the political situation in the world and spurious signals about a huge increase in the USDT issue by 500 mln dollars. The sharp increase in the USDT emission was accepted as a favorable factor for crypto progress, that’s why bots began purchasing digital currency after these movements. Another proof — the crypto sector has algorithmic trading.

What do we see? Bitcoin grew to 8400 dollars, where it runs into a problem of severe contradiction. Reasons for growing appeared to be false: erroneous information about USDT emission and the geopolitical tensity between Iran and the USA. USDT emission is not going to happen at the nearest time, and both countries are not interested in the following escalation — markets started to return to normal functioning. What does BTC feel? Again the decline.

The technical overview showed a considerable overbought of the Bitcoin after the crypto market started to grow. The Relative Strength Index was even more significant than when the Bitcoin bounced to $10K at the end of October 2019. The reason for such a leap was a famous speech from China’s head Xi Jinping about preparing a course on blockchain evolution. That is why it should not be surprising that now we are observing a rollback in prices. However, the level of hopefulness is still high enough because of the careful nature of the reversal.

Bullish views on BTC

Peter Brandt and some other well-known traders continue to keep bullish views on leading crypto. One of the analysts makes a note of several bullish deployments of events for BTC this year.

• 1st scenario. Bear pressure will push the Bitcoin down to $5K. As a result, there will be a rebound while the lower boundary is held.
• 2nd scenario. Exit out of the descending channel, which continues from the summer. Then the continuous cumulation of the asset will be the main reason for its increase.

Moreover, optimists are waiting for Starbucks (NASDAQ: SBUX) and Bakkt to cooperate and for Bitcoin applying to increase all over the world.

Bounces necessarily lead us to the critical question, where are prices headed next. The only hope that is soon leading digital currency will break through $12k and end the example of lower-highs for good.

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