14. November 2020

Bitcoin price at $20,000 before year-end?

Von admin

Swiss bankers & other analysts give their best BTC forecast

After the recent rapid rally, the Bitcoin course will probably take a breather before continuing to rise towards the end of the year. At least that is what Chris Thomas, Head of Digital Assets at Swissquote Bank, believes.

In this regard, the analyst made the following statement:

The crypto-currency could consolidate for a short period of time before continuing to rise until Christmas.

Indeed, further remarkable gains seem unlikely in the short term as the Bitcoin price has already seen a 60% rise from $9,800 to $15,900 in the last two months. Both the 14-day and 14-week Relative Strength Index are well above 70, indicating overbought conditions and scope for consolidation or a slight decline.

Patrick Heusser, Senior Cryptocurrency Trader at Zurich-based Crypto Broker AG, expects, following Thomas‘ comments, that the Bitcoin price will consolidate in the range of $14,000 to $16,000 in the coming weeks. However, he believes that the break will allow a rally in the Altcoins, most of which have lagged behind the Bitcoin price over the past two months.

Bitcoin price could also be heading for a major correction

Others see the whole thing somewhat less bullish. At least in the short term. Some analysts assume that the Bitcoin course is heading for more than just consolidation. Joel Kruger, a currency strategist at LMAX Digital, commented on this:

Bitcoin is overbought after breaking through the critical resistance at $14,000, suggesting that we may see a period of correction and consolidation.

Historically, the Bitcoin price has experienced several setbacks of over 20% in previous bull markets. This time, however, a large decline is likely as liquidity on the sell side appears to have dried up due to increased institutional participation and strong HODL sentiment among investors.
A Bitcoin price of $20,000 later this year?

While observers are divided on whether the Bitcoin price will consolidate or fall in the short term, there seems to be a consensus that the long-term outlook for BTC is extremely bullish. Some are even expecting a retest of the record high of $20,000 by the end of December.

Jehan Chu, co-founder and managing partner of Hong Kong-based trading company Kenetic Capital, has never seen investor sentiment better.

We expect short-term volatility alongside even stronger uptrends, with $20,000 before the end of the year and, if the stars are favourable, $50,000 to $80,000 by the end of 2021.

Thomas from Swissquote also expects a weaker dollar and political uncertainty in the US, which plays into the hands of the Bitcoin course in the long term.

All in all, BTC will probably maintain its general upward trend. Kruger also believes that there is still an immense upside potential in the Bitcoin price:

Make sure that the market establishes itself above $20,000 in 2021 before the next major upward expansion into the $30,000 to $40,000 range takes place.

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