Bitcoin’s performance has stumped many analysts and investors in the cryptocurrency space, and a recent prediction by a cryptocurrency enthusiast has tried to pinpoint the world’s most significant digital asset’s position in 2020.
Davethewave, a Bitcoin enthusiast, recently put up a chart that calculated Bitcoin’s 2018 sideways movement and linked it to where the price would be during the first quarter of 2020. The curve from the chart represented Bitcoin undergoing the same movement that would put it in the $8000- $8200 range next year. Many users in the space had questions about the prediction with Kapishaa, Twitteratti asking:
“So you are saying price after one year will be more or less same as today. Best strategy is to sell now and buy 1 year later. Right now, buy Google stocks.”
To this, Davethewave replied:
“Same as two years ago.
This bodes very well for building a base going forward…”
Looking at the Bitcoin charts for 2018, it is pretty evident that the sideways movement was directly succeeded by the massive bear crash from which the cryptocurrency is recovering even now. The sideways movement started with a peak of $8264.22, with the last hold being at $6280.52, after which the value of Bitcoin crashed significantly to settle near the $3000 range.
Some users in the space have also speculated that the reason why Bitcoin might undergo a sideways movement is because of the impact of altcoin prices. It is a generally accepted axiom that when significant altcoins like Ethereum and XRP start a ramp-up in terms of prices, Bitcoin is the one whose prices start consolidating. The pattern is starkly visible when Ethereum prices start moving up, a situation where Bitcoin’s value buckles and vice versa.
Applying the Bollinger bands on Bitcoin’s current standing, one can see that the upper band and the lower band have both started a slight convergence. This convergence is a result of the sideways movement that the cryptocurrency has been undergoing in October, a month that was expected to change Bitcoin’s standing for the better.
At the time of writing, Bitcoin trades for $8006, a marker that is far below from what it held at the beginning of the year. Fortunately, the cryptocurrency holds a healthy market cap of $144 billion alongside the trading volume of $15.7 billion. The trading volume increase also occurred in conjunction with recent reports that revealed that the cumulative Bitcoin trading fees had crossed the $1 billion mark.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.