Despite the slight recovery, Bitcoin remains decisively down on the week, trending far lower since the $9,200 high was established on Saturday. In fact, from the local top, the cryptocurrency has lost 12%, and over 25% since February’s $10,500 top, dramatically underperforming traditional markets in the same time period.
Many traders have lost their shirts during the drop and, as a result, have begun to fear the existence of a long-term uptrend in the crypto market. Though, leading analysts have asserted that there is nothing to fear, trying to assuage investors’ fears by saying things like Bitcoin still has the potential to hit $15,000 to $20,000 by the end of 2020.
Is Bitcoin Still On Track to Hit $20,000 In 2020?
Speaking to BlockTV in a recent interview, Joel Kruger, currency analyst at LMAX, asserted that while the ongoing price action in this nascent market is currently “interesting,” the drop does not “compromise the outlook for the possibility that this market could be trading [at] $15,000 to $20,000 by the end of the year.” A rally to $15,000 would mark a nearly 100% rally from the current level.
Kruger further explained that as long as this area holds, or at least the $6,000s hold, it will show the strength of Bitcoin, even in the face of macro turmoil.
"It is going to be an interesting time but by no means does it comprise the outlook for the possibility that this market could be trading $15,000-$20,000 by the end of this year." – @JoelKruger
See full interview with @LMAX Currency Analyst: https://t.co/0NSjTfeB17 pic.twitter.com/6KSoWKqfV5
— BLOCKTV (@BLOCKTVnews) March 9, 2020
Kruger’s analysis is relevant as he in December 2018 remarked that he expected BTC to end 2019 between $5,000 and $8,000. And that it did, with the cryptocurrency ending the year right around the upper-middle of that range in the low-$7,000s.
Kruger isn’t the only historically accurate analyst to have asserted that Bitcoin remains well on track to hit $20,000 in the coming 12 months or so.
Just recently, pseudonymous trader Dave the Wave — the analyst who called that BTC would fall from above $10,000 to bottom around $6,400 — recently asserted that the cryptocurrency remains on track from a long-term perspective to enter a long-term bull run next year.
His projections have shown that he believes Bitcoin will cross past $20,000 late this year or sometime in Q1 of 2021.
Bitcoin’s Fundamentals Still Extremely Strong
Not to mention, the fundamentals of the cryptocurrency seemingly remain intact.
Namely, the difficulty of the Bitcoin market — how hard it is for miners to solve blocks — just saw a gain of 7%. PlanB, the pseudonymous analyst behind the famed stock-to-flow model, recently shared this bullish statistic, writing that there is “no sign of weakness two months before the halving.”
This optimistic statistic shortly after the hash rate of the Bitcoin network — the amount of computational power that is allocated to processing blocks — hit a new all-time high of 136 exahashes per second.
Photo by Dmitry Demidko on Unsplash