The next halving and events of worldwide impact could be affecting Bitcoin’s price. Some analysts suggest that Bitcoin will surpass its all-time peak this year.
The performance of the main crypto asset last January was remarkable, with an increase of more than 30%. Besides, Bitcoin’s price reached in recent days USD 10,000 for the first time this year.
Cryptocurrency market analysts have renewed their perceptions of Bitcoin’s behavior, even daring to release new predictions in the coming months. Most of these views show optimism for the near future.
Among the most optimistic is Tom Lee, co-founder of financial analysis firm Fundstrat. He believes that this year has prospects of outperforming 2019. Among the possible catalysts for a good year, he precisely highlighted the halving.
Michael Sonnenshein, director of Grayscale, went beyond circumstantial elements. He believes that Bitcoin might be strengthening as there is a narrative in the investor community that the cryptocurrency is consolidating its place as a store of value.
Likewise, Willy Woo, one of the most recognized in the ecosystem for its indicator analyses, recently expressed his opinion. Woo asserted that the recent conquest of the USD 10,000 mark corresponds to the core investment activity, a concept based on the activity of those retaining the funds, not short-term traders.
Possible Future Movements
According to Tom Lee, Bitcoin’s prices resumed their 200-day average, which points to recovery from a sustained bullish trend. As a possible margin of profit for Bitcoin’s prices, the analyst referred to an increase of up to 197%, but he did not indicate a possible period for the rally to materialize.
The percentage suggested by Lee indicates that such increase would mean reaching new all-time highs for the cryptocurrency. At the time of Lee’s words, Bitcoin’s price was just over USD 9,200. That percentage increase would lead the price to reach about USD 27,300.
Bob Loukas, Founder of The Financial Tap, saw on February 5th a steady bullish trend in the short term, which has been confirmed in recent days with the arrival of USD 10,000. In the medium term, he sees “all the signs of growth,” as he wrote on his Twitter account.
Even though Loukas did not specify concrete time frames or prices, he had already predicted in late 2019 that Bitcoin prices would reach a new all-time high by the end of this year and possibly higher increases by 2021.
Among those that had been bearish regarding Bitcoin predictions, the market operator Tone Vays has changed his position. He now considers that consolidation in the USD 10,000 range increases the chances of a major bullish trend, even the possibility of new all-time highs.
Price Increase, Decrease in Dominance
While Bitcoin’s prices have gained more than 35% so far in 2020, according to data from CoinMarketCap, the market dominance by the main cryptocurrency has taken the opposite direction.
According to the same source, Bitcoin’s dominance over the cryptocurrency market began this year at 68.29%. However, at the time of writing this article, that percentage has dropped to 63.27%.
For that reason, some people in the ecosystem consider that the market momentum is not being given by Bitcoin, but that the so-called altcoins, those cryptocurrencies other than Bitcoin, have gained greater strength in this bullish season.
Despite this decline in Bitcoin’s dominance, the current percentage remains well above its lowest times in early 2018. The current level almost doubles the 32.81% that the cryptocurrency recorded against the rest in the middle of January that year.
By Alexander Salazar