Bitcoin confidently overcame a mark of $ 8000, and last week even broke through the level of $ 9000. Many altcoins also grow after the flagship cryptocurrency and update annual highs. Trading volumes on cryptocurrency exchanges in May, broke records, and the market capitalization even went beyond $ 280 billion.
Now the renaissance of the crypto market is clearly observed after a long and painful drawdown. All users of cryptocurrency are interested in the same question – where is the ceiling of the new round of growth? What heights will Bitcoin reach this time?
Observing opinions in this industry is extremely important, firstly, because of the enormous amount of insider information that circulates between the authorities of the crypto market. Secondly, because the sum of these opinions is often in itself a factor affecting the price of cryptocurrency.
It must be said that during the correction, some managed to lose faith in the coming bull rally. So, the head of blockchain-company IOHK and the founder of Cardano Charles Hoskinson recently said that the idea behind Bitcoin failed, and he was unable to implement the concept of decentralized money. Previously, he believed that the first cryptocurrency would return to $ 20,000 only in 10-11 years, but now he completely asserts that, in addition to Bitcoin (BTC), there are thousands of more significant coins.
Many giants from the world of traditional finance have a positive, but cautious attitude to the introduction of cryptocurrency into the world economy. A good example is PayPal's position. Chief Financial Officer John Rainey notes that Bitcoin has not yet come. However, all the major players in the financial sector, either openly or in secrecy, are already testing both the blockchain and cryptocurrency instruments.
Prerequisites for BTC growth
In recent months, cryptanalysts have been trumpeting that the bottom has been passed and a new bull rally has begun. Experts of the Adamant Capital cryptocurrency fund at the end of April spoke in great detail on this topic. They noticed that the mood of cryptoinvestors changed from despair to hope.
Researchers also recalled market cycles typical of Bitcoin. If you look at the question from this side, then in April, bitcoin just came to the beginning of a new growth period.
An additional factor for them was that many small retail investors left the market, and volatility fell below 5%. The game remained mostly long-term players who could provide a real boost to growth.
In general, most market experts and traders see obvious patterns in the phases of the Bitcoin market. They are noticeable even on charts, which analysts often remind us of on Twitter. For example, below is a good visualization from the famous trader Peter Brandt . He pointed out that Bitcoin repeats the patterns of 2015, which ended in a hundred-fold growth.
Binance Research experts in their study called the increasing correlation between cryptocurrencies one of the main signs of sustainable future growth. According to their observations, this phenomenon is always intensifying on the threshold of the trend reversal.
Over the past week, three extremely interesting opinions appeared on the Bitcoin rally. One of the first to share his views was the head of BitMEX, Arthur Hayes , who said that bitcoin entered a steady growth phase, as quotes very quickly returned to $ 8,000 after a slight correction. Also, one of the factors for him was the price of futures, which recently have significantly exceeded the spot value of BTC.
He was supported by the trader The Crypto Dog , who added that the record of the volume of trading in cryptocurrency is also encouraging.
Tom Lee, co-founder of Fundstrat Global Advisors, in turn, pleased the crypto-community with a reminder of as many as thirteen reasons why Bitcoin should enter a long bullish rally.
According to him, Bitcoin almost immediately began to grow again after a small correction. Among its main arguments in favor of sustainable growth are greatly increased trading volumes and various factors of technical analysis.
In addition, Lee drew attention to the appearance on the price chart of the first cryptocurrency “bullish cross” – the intersection of the 200-day moving average line with a shorter period.
Here are all 13 arguments in favor of a long and powerful growth of Bitcoin from Tom Lee :
- November 2018. Looking back: Jihan's fork-wars (BCH) and Craig Wright (BSV) depleted the impressive stock of BTC that belonged to their mining pools. And while Bitcoin fell to $ 3200 – this volume was sold.
- December 31, 2018. The premium to the value of the Grayscale Bitcoin Investment Trust shares in relation to the spot price of the underlying asset fell to 5% – the lowest value since 2017, which historically means “surrender”. Since then, this figure has risen to 41%.
- January 23, 2019. The daily volume of online transactions at an annual rate for the first time since January 2018 showed a positive trend.
- March 27, 2019. The Bitcoin Disaster Index (BMI) exceeded level 67 for the first time since August 14, 2017. From 2015, a BMI above 67 has never been seen in a bear market.
- April 1, 2019. The price of Bitcoin for the first time since March 2018 (13 months) closed above the level of the 200-day moving average.
- April 2, 2019. The famous Twitter crypto expert @ParabolicTrav reappeared after a seven-month break.
- April 18, 2019. Tuur Demeester has published an article “Extensive Bitcoin Accumulation”, which states that Khodler’s wallets began to accumulate Bitcoin.
- Mid April. The volume of over-the-counter trading is increasing. A lot of OTC brokers say that customer activity has increased by 60-70% over the past four months and many old accounts have begun to accumulate Bitcoin again.
- Mid April. Online activity is growing.
- April 22, 2019. Willy Wu publishes a survey of 20 "NG" (slang – "real gangsters") and notes that the bears suggest that Bitcoin has already reached the bottom.
- April 23, 2019. "Golden Cross" on a Bitcoin chart. The 50-day moving average bitcoin exceeds the 200-day. Historical sign of growth.
- May 1, 2019. Quiet market reaction to the buzz around the history of Bitcoin / Tether and the prosecutor's office in New York, demanding to provide data on the hidden transfer from Tether reserves to Bitfinex, which could be an attempt to cover the misuse of funds by a third party – the payment processor Crypto Capital.
- May 13-15, 2019. The Consensys 2019 conference confirms that the cryptozyme is over.
Now is the best time to buy bitcoin?
Weiss Ratings chief cryptocurrency analyst Juan Villaverde thinks so . According to him, Bitcoin will soon be a small correction, and buying one on it is the same as buying Bitcoin for $ 300 in 2015. After that, the expert expects sustainable growth, which will pay back the entire risk of buying on a drawdown.
CoinDesk Markets analyst Omkar Godboul predicts that BTC will soon test the $ 10,000 mark. The graph below clearly shows how the price breaks through the upper limit of the Vympel pattern, which indicates a very likely further growth. Any correction will be short-lived, since the pressure of buyers is too great (as evidenced by the values of the Chaikin Money Flow indicator).
The head of the cryptocurrency bank of Galaxy Digital, Mike Novograts, even defended his opinion about the growth of Bitcoin in a public dispute. The famous Bitcoin critic economist Nouriel Roubini expressed confidence that cryptocurrencies will never compete with traditional payment systems, and the industry is too full of manipulations to be taken seriously by anyone.
Novograz retorted that people have already recognized Bitcoin as a means of storing capital. He also promised to wear a T-shirt with the inscription "Nuriel was right" if BTC will trade below $ 6,000 by the end of the year, but for now its more likely forecast is $ 10,000. By 2021, the main cryptocurrency will reach $ 21,000.
How much will bitcoin grow this time?
Here opinions vary from moderately optimistic to extremely optimistic. The founder and head of the investment company BKCM LLC, Brian Kelly, believes that within two years, Bitcoin may well exceed historic highs. Will help him overcome past heights of the arrival of institutional investors and infrastructure development. The expert also has high hopes for the launch of Bakkt and Fidelity sites. Sonny Singh, director of the BitPay cryptocurrency processinog service, believes in the growth of Bitcoin due to institutional institutions.
Bitcoin at $ 20,000 by the end of 2019 is a conservative estimate, says Andy Chung, head of the operations department of the OKEx cryptocurrency exchange . He noted that most investors will not sell cryptocurrency, despite the strong growth in recent months. On the contrary, the major players will continue to increase their balance sheets and push the price up.
The aforementioned head of the BitMEX exchange, Arthur Hayes, believes that in the next few years the price of BTC will reach $ 50,000 . In his opinion, cryptocurrency is the only response to the actions of governments that are increasingly destroying financial confidentiality.
Analysts at Heisenberg Capital do believe that when Bitcoin reaches $ 100,000, all other cryptocurrencies and tokens will simply be squeezed out of the market, because they will be useless to no one.
The Galaxy techanalyst, popular on Twitter, went further in his predictions – he expects bitcoin to grow to $ 330,000. The expert also refers to a pattern on the chart that repeats the situation of 2015, considering that the story will repeat. If the market keeps the current dynamics, then this price BTC can reach by the end of 2021.
A new wave of parabolic growth predicts analyst platform eToro Mati Greenspan . According to him, the current growth is only a small mound on the slope of tremendous growth that BTC expects. We are talking about growth of 10,000–50,000%, which is not only characteristic of the first cryptocurrency due to cyclicity, but this time it is supported by many fundamentally positive factors.
Most experts agree that Bitcoin has already begun a new round of powerful growth, which will not end soon. Analysts differ mainly in its rates – for example, most forecasts for the end of the year are in the $ 10,000 – $ 20,000 delta. But the BTC price limit is still very far away – and maybe it will not be reached during this bullish rally.
Publication date 03/06/2019
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