Blind optimism or raw realism - what does 2019 mean for Bitcoin?

In early 2018, many analysts predicted Bitcoin would develop its full potential in the course of the year, and the price would skyrocket even more, overshadowing the 2017 rally. Mike Novogratz predicted that Bitcoin could very easily reach $ 40,000 by the end of 2018 Jeet Singh made a statement that the original Cripp currency could reach $ 50,000 this year. John McAfee also did a similar bullish prediction, but his vision stretches to 2020.

In the ocean of hundreds of analysts, fund managers and financial gurus who predicted Bitcoin's growth within tens of thousands of dollars by the end of the year, a handful of people who stood up to the end of the year still stood out. Even Mike Novogratz softens his optimism. On October 3, he publicly stated that BTC would not fall below $ 9,000 by the end of the year. He is wrong.

The fall in Bitcoin's price has caused serious damage to digital asset investors earlier in December after the price managed to sink under $ 4 500. A bottom that was not reached for more than a year.

In some cases, things will get even worse. Famous analyst Willy Woo predicts that Bitcoin will reach its real bottom in the last quarter of 2019. Its calculations are based on indicators that were created by itself. He argues that his bearish scenarios are still under way. Its indicators measure the state of the market and the blockchain itself. What has changed is that NVTS has passed its resistance, which is usually a sales signal. NVTS is a derivative function of the NVT ratio created by Dimitry Kalichkin. The indicator provides early warning information before price peaks and dips. NVT or Network Valuation, divided by the value per transaction, is an evaluation indicator created by Woo, which measures Bitcoin's value against the activity and state of the blockchain itself.

The graphics of the NVT indicator, however, show that things can be greatly improved at the end of next year.

There are other acceptable evidence that supports a Bullish future for Bitcoin, but there are still some factors that have not been revealed enough for the start of a new bullish rally. Tom Lee also predicted a boom for the digital currency in 2019, but his view is rather speculative. Lee predicts that Bitcoin will reach $ 15,000 at a gradual rising pace in 2019. His initial forecast, however, was that the coin would reach $ 25,000 by the end of 2019.

Earlier this year, Fundstrat published a report stating that Bitcoin could reach $ 64,000 by the end of next year. Their analysis is based on calculations on Bitcoin digging costs. Their analysis also suggests that Bitcoin's demand will be relatively stable over the next year.

Adopting and implementing Bitcoin ETF would have a very positive price impact. A huge number of ETF applications have been placed and denied by the SEC, but there is evidence that the US Treasury Department has been gradually mitigating the tone and starting to accept the idea with a warmer mood.

The price of BTC is also influenced by the consumer groups that inflow or withdraw funds from the market. In 2018, the outflow of retail investors began, and institutional began to emerge. This contributed to the drop in BTC's price during the year. If the interest of institutional investors to Bitcoin continues to grow, it will certainly support the price. Conversely, if they lose interest, the price will continue to fall.

Although Bitcoin is the largest Crippled currency in terms of market share, it is the slowest and most expensive crypto network and is virtually impractical for daily transactions. If a new approach is adopted to turn Bitcoin into a more practical currency, it will certainly increase its interest in it. An example is Lightning Network. The price will necessarily rise upwards if this change occurs.

Source: Finance Magnates

Photo: Pixabay

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response