The price of the world’s leading cryptocurrency breached $10,000 level over the weekend only to take a drop back to $9,700.
That, however, was a healthy retracement and as long as we remain above $9,000, we are all good.
According to popular trader Crypto Michaël, Bitcoin is calming down and approaching the first support level around $9,400 and $9,500.The trader expects some consolidation still.
However, Bitcoin jumped back above $10,000 today, climbing to $10,380 level. A spike in the flagship crypto’s price means altcoins are enjoying a hike too.
Chainlink and Tezos are leading with 13% and 11% gains respectively while EOS and Ethereum are up 8 and 7% respectively as well. However, the “upside potential is gigantic (with) massive gaps on altcoin charts ready to be filled,” said the trader.
Random coins are suring even higher such as RefToken which is up a whopping 168% in the past 24 hours. Other such pop ups include Hedera Hashgraph (70%), Bigbom (51%), CargoX (40%) and ZrCoin (37%) among others.
Bitcoin to Break into a New ATH in 2020
The number one digital asset is up nearly 40% in 2020 so far following 88% gains in 2019 however, it is still down 49% from its all-time high of $20,000.
According to Fundtstrat Global Advisor founder Tom Lee, we can make a new high this year, who is expecting BTC to shoot up to $27,000.
Lee explained that last year Washington killed the bitcoin rally but the 2020 elections mean “bitcoin can rally very strongly from here.” Apart from the US Presidential election in November, the deadly coronavirus risk and geopolitical tensions would also work in Bitcoin’s favor, he said.
Talking about the 200 day moving average, that was broken two weeks ago, Lee reiterated how this breakout means we are back in a bull market. He also pointed out that, historically, 200 DMA breakout has resulted in an average six months gains of 190%.
Amidst these tailwinds is another historically bullish event, bitcoin reward halving. Scheduled to occur in May 2020, this halving would see the supply shock resulting in 900 bitcoin being mined daily instead of the current 1,800 BTC as the reward gets cuts into half from 12.5 BTC to 6.25 coins.
Lee is extremely bullish on bitcoin however, he expects the Dow Jones Industrial Average, which has been constantly making new highs along with S&P 500, to hit 30,000 before Bitcoin. However, he sees Bitcoin being the first one to hit 40,000.
But you won’t be seeing $6k or $4k again
Meanwhile, prominent analyst PlanB who doesn’t have a plan c if the stock-to-flow model that determines bitcoin’s average top at $100k fails. He “live by S2F model (and) die by S2F model.”
While sharing his views on bitcoin price, PlanB said the digital currency would stay above $8,200 in 2020 and we won’t be seeing $6,000 or $4,000 again.
From here, we would make it above $10,000 in May 2020, during the third reward halving. This is where the bull rally will start and tops at $100k before December 2021.
As we reported, PlanB personally sees bitcoin to overshoot $100,000, this is because, he said the last two halvings in 2012 and 2016 as well bitcoin overshot S2F model values by at least a factor of 3.
In comparison to the last bull cycle of 2017, awareness, adoption including institutional to development and bitcoin on-ramps have increased significantly, meaning we will very well sail past this number.