Bitcoin Price Analysis
Bitcoin (BTC) is a cryptocurrency that functions as a decentralized digital currency with no central bank or administrator. This digital currency was founded by an unknown group of people or a person under the name of Satoshi Nakamoto in 2008 and was launched in 2009 when its source code was released as open-source software. This currency can be sent from user to user on the peer-to-peer Bitcoin network that does not require any intermediaries.
Due to the fast development and smart management, Bitcoin has become one of the largest cryptocurrencies in the world by market capitalization. Besides, Bitcoin is not issued or supported by any banks or governments as a means of payment, but it provoked the launch of hundreds of other virtual currencies like altcoins.
But how did it happen? One of the first achievements of Bitcoin as a cryptocurrency is the Segregated Witness (SegWit) protocol upgrade that was activated in the summer of 2017. This upgrade allowed the performance of the greater number of transactions in Bitcoin blocks, which led to the increase of the Bitcoin price from less than $1000 up to $19000.
Afterwards, 2018 has become an impressive year of institutional adoption for Bitcoin, despite the lack of its overall approval. Such institutions as Fidelity Investments, Yale University, and Square Inc. have shown their interest in the cryptocurrency. In addition, in 2018 the hashrate, in other words, the speed at which a computer is completing an operation in the code, on the Bitcoin network was increased by 60%, which was an indicator of enhanced investments in the critical infrastructure. And last, but not least, in this same year, the number of unique addresses has been increased by 50%, showing the improved Bitcoin adoption.
In 2017 the price of Bitcoin started at $998, reaching a value of $13412.44 on January 1, 2018, after going through its all-time peak of $19783 in December 2017. Throughout the rest of the first half of 2018, the price of the Bitcoin has fluctuated between $11480 and $5848. At the beginning of 2019, the price has been lowered by 72% from 2018, reaching a value of $3747. By June 2019 the price recovered and constituted around $13000. However, due to the COVID-19 pandemic, the price of Bitcoin at the end of 2019 and the beginning of 2020 has fallen significantly.
In accordance with CoinMarketCap, data taken at 26/04/2020 states the following:
- Current price of Bitcoin: $7650.36
- Market Cap: $140 357 148 462
- Volume (24 h): $31 912 173 799 USD
- Circulating Supply: 18 346 487 BTC
- Maximum Supply: 21 000 000 BTC.
Technical analysis on the Trading View website provides the summary for Bitcoin based on the most popular technical indicators like Moving Averages, Oscillators, and Pivots. Out of 11 Oscillators, 7 of them are Neutral, 3 of them are indicating Buy action, while only 1 is stating Sell action. Most of the Moving averages are stating Buy action. Overall, the Summary states that the main action that needs to be taken in relation to Bitcoin, BTC/USD, is Buy. Pivots for the BTC/USD cryptocurrency are indicated in the table below.
BeInCrypto website editor, Jon Buck, suggests that the Stock-to-Flow (S2F) model, that is being used to predict the price of Bitcoin and also has strong support among BTC users, offers a price prediction of $100000 by 2021.
Looking at more recent dates, the even-based forecast algorithm of Coinpredictor.io estimates the value of Bitcoin to be reduced by 18.1%, having a value of $7552.5 by 03/06/2020, while the price-based forecast algorithm on the same website estimates that in 3 months the price will approach $14985.12. However, the long-term forecast shows that Bitcoin price is going to reduce in cost.
Despite tough times the world is going through due to the Coronavirus outbreak, Coin Pedia still states that Bitcoin is the best option for people to invest in 2020.
Since the fluctuations of the Bitcoin price, some statements and price predictions have been made by experts in the cryptocurrency and particular street traders. Dan Hedl, a person who has a really high expertise in Bitcoin and shares his analysis of this cryptocurrency, states that: “Bitcoin just broke $9000. The world economy is in disarray. And you still don’t own Bitcoin yet?”.
This article pursues only informative purposes, sharing with you a piece of up-to-date information. Moreover, it doesn’t force you to invest in any of the cryptocurrencies mentioned.