Bitcoin Could Hit $40,000 by end of 2020

Bitcoin believers waited for a global economic crisis for years, hoping it would prompt investors to inject hundreds of billions of dollars into the crypto-currency’s small, liquid market. But the narrative failed big time as bitcoin came face to face with a real market-crisis-in-making, led by the Corona-virus pandemic.

Fundamentally, its crash from $10,000 to $3,900 has wiped out weak hands. Investors with higher risk appetite are still holding onto their tokens or buying it cheaper, according to some analysis. It shows that around 40 percent of the crypto-currency has not left wallets in the past two years.

Another crypto data analytics firm drew a similar conclusion, highlighting that bitcoin’s price halving didn’t deter long-term investors from holding it. On the contrary, the plunge attracted them to buy bitcoin at cheaper rates.

So it appears, bitcoin is trending inside a giant  Symmetrical Triangle since late 2017, confirmed by a series of sequential troughs and peaks forming two trend-lines that converge at a roughly equal slope. The height of the Triangle is about $18,000.

Bitcoin is testing the Triangle Support lower trend-line for a pullback, which means it has the potential of bouncing back towards the Triangle Resistance upper trend-line. The price could keep consolidating within the Triangle range for the remainder of 2020, albeit staying below $6,000.

But a breakout above the Resistance could lead bitcoin up by at least $18,000 in the medium-term, according to my opinion. Such a move could push the crypto-currency beyond its all-time high of $40,000.

Please note that, I am a fan of crypto-currency and the above mentioned article is my own opinion only.