Bitcoin hasn't worked too well in recent days.
Despite the fact that the block reward reduction took place just a few hours ago, the cryptocurrency actually fell from last week's $ 10,100 highs, now trading at $ 8,500. . However, the decline did not stop optimistic investors from waiting higher, and one analyst noted that Bitcoin may be on track to reach $ 20,000 by the end of the year.
Related Reading: Don't Be Surprised to See Bitcoin Quickly "Pumping" Towards $ 10,000: Analyst
Bitcoin is preparing to explode around $ 20,000
When the weekly Bitcoin candle closed on Sunday evening, investors were scared.
After seven weeks of consecutive gains, the cryptocurrency had printed a "Doji" manual candle, marked by a thin body and long streaks above and below the candle. According to some traders, Doji candles are a sign of a trend reversal.
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Always according to the popular merchant who shared the table belowIt can be a precursor to more profit.
He noted that the last time Bitcoin saw seven weeks of consecutive gains, a Doji was at the start of the 2019 bullish rally. What followed the last appearance of this trend was a 160% increase over a period of time. 39; about three months.
This means that if history repeats itself, the cryptocurrency could reach $ 20,000 by the end of 2020.
@GalaxyBTC (i Twitter identifier) showing the similarities between the recent Bitcoin rally and the one seen at the start of the 2019 bull race.
It is not the only bullish factor that this same operator has been looking for in recent weeks.
According to previous NewsBTC reports, he noted that his custom indicator on the two-week Bitcoin chart had just printed a "purchase".
This was last seen when BTC started increasing from $ 6,000 to $ 14,000, and was also seen in late 2017 before the 2000% recovery of $ 1,000 to $ 20,000. Repeating history would see the crypto market recover hundreds of percent from here.
@GalaxyBTC (Twitter ID) graph from Bitcoin macro perspective.
In a short period of time, the analyst noted that Bitcoin's decline in recent days had actually stopped at three critical levels: historical resistance, an upward trend that has formed at $ 3700 low and a region of liquidity. $ 8,000. All of this suggests that Bitcoin is about to recede higher.
It's not the only bullish factor
It's not just these technical factors that suggest Bitcoin will rebound to $ 20,000 this year.
Talk to the CNBC "Fast Money" panel After halving it, Galaxy Digital CEO Mike Novogratz maintained his optimistic tone about the main cryptocurrency.
He claimed that with all the encouragement from governments, coupled with the record number of liquidity operations by central banks, Bitcoin could reach $ 20,000 by the end of the year.
Novogratz, like other analysts, believes that Jones' entry into the cryptocurrency market lowers the barrier of entry for other investors on the close. This should result in a large increase in the amount of capital entering the Bitcoin market in the coming months, as suggested by an economist who tracks cryptographic space.
Photo by Nik Shuliahin on Unsplash
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