January 25, 2021

CEX blog. IO | Bitcoin rate to reach $20,000 by the end of the year

Comments by Yuri Mazur, Head of Data Analysis Department of CEX.IO Broker

After last week's bitcoin quote has reached a resistance level$ 18,200, there was a local correction to $ 17,300. However, this was followed by a return to $ 18,200 and a breakdown of resistance. The growth of BTC / USD continued to 18,800, after which the quote turned into a sideways movement, which, in turn, turned into a new correction to 18,100.

Nevertheless, support at 18,200 contributed to a rapid rebound and a return to the price level of 17,600.Now we can say that the price of bitcoin stays in the local corridor between 17,600 and 18,800 dollars.

Also an important factor influencing the trading dynamics of BTC/USD is the significant interest of public companies and institutional investors in bitcoin.According to Bitcoin Treasuries, they now own 4% of the bitcoin issue.

The ongoing COVID-19 pandemic continues to contribute to growthBitcoin quotes, as it strikes at stock markets and economies of developed countries.For example, the emerging stagnation in the Dow Jones index is a likely result of rising economic risks against the background of the second wave of the pandemic and new records for daily morbidity in the United States.At this time, bitcoin continues to be growing.

Even if the effective COVID-19 vaccine is soonit is likely that this will not lead to a sharp withdrawal of capital from bitcoin, as large market players are not prone to impulsive behavior and expectalso re-evaluate bitcoin as a new tool to protect capital from capitaldifferent kinds of risks will continue to stimulate the demand for bitcoin from large capital.

If we talk about the price prospects of BTC/USD at the end of 2020, two main scenarios are possible: a correction to the area of $16,000 followed by a rebound or continuation of lateral movement, after which the growththe quotes will continue.

If there is a correction to the area of 16,000, then there will belikely to return to 19,000 and approach the 20,000 threshold by the end of the year.If the correction does not happen and the side trend will continue, then on the way out of it by the end of the year the price of one bitcoin can be$21,000.

At the same time, the correction scenario seems to me more likely, because we see a very long and large in price range upward wave.Such waves are always replaced by a corrective movement, so in this situation it would be a very logical continuation of the uptrend.

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