What will be the price of bitcoin by the end of 2020? Expert predictions

Two days ago, the Bitcoin market rate rose to a new local high of $19,400 - very close tohistorical highs of $ 20,000. Then the cryptocurrency fell in price and now costs $ 17,100. Since the beginning of the year, BTC has risen in price by 150%, writes RBC Crypto.

Chances for a new high

Bitcoin has already approached its all-time high and it will not be difficult to upgrade it by another $ 500-1000, says Mikhail Karkhalev, financial analyst at Currency.com.

“Now the cryptocurrency market has a pronounceduptrend, growth is almost exponential. This only suggests that the market has a strong imbalance between supply and demand in favor of buyers. Any sales are immediately bought back, and growth continues "- he explained.

That bitcoin will update by the end of 2020historical maximum, there is little doubt, however, how high the price of a cryptocurrency can rise, no one knows now, says Anatoly Knyazev, co-founder of the EXANTE brokerage company. Among the factors that he cites as drivers of cryptocurrency growth are institutional investors entering the market and Paypal's addition of support for Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

Updating the historical maximum with bitcoinmay be a "false breakout", after which a fall to $ 16 thousand or $ 14 thousand is possible, warns trader and founder of Tradunity Dmitry Lavrov. Then the price is likely to return to an uptrend, the expert suggested.

Bitcoin should break the $ 20 mark in Decemberthousand and heading to $ 25 thousand, but it will be difficult to explain if the growth towards the target occurs without correction, Lavrov stressed. It is now logical to expect a decline in the price of BTC, as the coin has made a "good move" with minimal pullbacks in recent months, he added.

Wait for the correction?

The bitcoin rate in February-March decreased from $ 10 thousand. to $ 3.8 thousand amid the collapse of the markets. Then the price of the coin began to rise and in August rose above $ 12 thousand. In September, the growth was replaced by a temporary decline, during which BTC fell in price to $ 10 thousand. After that, the upward movement continued, the asset rose another 90%. The dynamics from the March minimum was about 400%.

A correction after overcoming the record of $20 thousand is possible, Knyazev continued.But in his opinion, it is unlikely to be deep and long.Investors may be able to release a smaller portion of the assets to lock in profits, but most of them will bekeep waiting for further growth.

“A deep drawdown, as after the bubble of 2017, should not be expected. In 2017, BTC rose 20 times in price, after which it fell 5-6 times, and in 2020 BTC more than doubled in price ”, - the expert recalled.

He clarified that the May halving prevents the collapse of the bitcoin rate. Moreover, if the price of the coin drops below $ 16,000, it could attract new buyers to the market.

Possible correction will warm up the interest of the participantsmarket, agrees Karkhalev from Currency.com. It's too early to talk about the beginning of a downtrend - the growth cycle of the first cryptocurrency is likely to continue until the second half of 2021, he said. But this does not mean that you need to mindlessly buy everything, the expert emphasized. He recommended not to forget to hedge risks, as no one knows how the market will actually behave.

CEO expects a different turn of eventsBKCM LLC Brian Kelly. He admitted that bitcoin has temporarily reached its limit and in the near future may fall to $ 12,000. However, this does not negate the rise in the price of the coin to $ 50,000 in the long term, Kelly said.

Altcoin Season

Against the background of the growth of bitcoin, altcoins showed positive dynamics. Ethereum has risen in price by almost 100% since the beginning of autumn. The XRP token gained over 200% over the same period.

Dmitry Lavrov admits that many altcoins can continue to become more expensive if bitcoin does not passIn addition, the temporary depreciation of the main digital coin may beHowever, there are doubts that they will be able tothis year update historical highs.

Altcoins will be able to renew their highs ifbitcoin will continue to grow to $ 30-35 thousand, predicts Karkhalev. Then a new "crypto fever" may begin on the market. Tokens such as XRP or TRX have relatively little liquidity, so a large investment will not be required to increase their price by 300-500%.

Head of the Six Nines data center Sergey Troshinexpects that in the coming months, the share of bitcoin in the market will begin to decline - there will be a flow of capital from BTC to altcoins. They are more volatile, and investors looking for rapid growth are not satisfied with BTC alone.

In order for popular altcoins to update their historical highs, they must grow by hundreds of percent.For example, Ethereum to exceed the record of $1440, you need to rise in price by another 140%.The XRP token should grow by another 480% to overcome the historical high of $3.84.

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