Will Bitcoin return to the previous price of $ 20,000 and how it will happen – Canadian analysts have assumed about the possible growth of digital gold, looking back at the patterns of the past years.
Bitcoin, the first and most popular cryptocurrency in the world, today is in a "suspended" state. Having fallen from a record mark of $ 20,000, digital gold is in no hurry to recover. In February, the coin overcame the downtrend and broke through the barrier, first at $ 3800, then at $ 4000 – as Cryptorbit.Media wrote.
At the end of February 2019, the price of BTC rose by almost 11% from the fixed bottom. Analysts at Canaccord Genuity Capital Markets Canadian company reported on how the course is expected to develop.
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Bitcoin analytics – course jumps and growth patterns
According to analysts, $ 4700-4800 for 1 BTC is the potential price base of the coin. Looking at the graphs of the previous volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details of the course, you can see that the patterns of the curves from 2011 to 2015 and from 2015 to 2019 are strikingly similar.
Michael Graham and Scott Su from Canaccord Genuity Capital Markets explain the situation this way: "Looking into the future, if Bitcoin continues to follow the same trend as in 2011-2017, it is assumed that it will reach the bottom approximately now and will soon begin to rise to its historical maximum – $ 20,000, theoretically reaching this level in March 2021."
Charts that have been studied confirm that Bitcoin’s pricing policy works in a four-year cycle. That is, the price of a coin on the market is closely related to the remuneration of BTC miners. Investigating the cyclical nature of changes in remuneration, one can conclude that the volatility of the course is closely tied to the payout paradigms.
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Bitcoin pricing theory
The evolution of Bitcoin over the past year confirms the theory on graphic models from Canaccord Genuity Capital Markets. In this case, of course, there are some situational differences that can provoke mathematical errors in the analysis. The main distinctive features can be considered political and economic "catalysts", which accelerate the cycle.
"Despite the fact that this time there is a different external dynamic compared with four years earlier, we point to several tangible catalysts that can raise the price of Bitcoin in 2019. First, it is expected that storage solutions in institutions will appear in the first half of 2019, led by Fidelity Digital Assets"
Bitcoin analytics answered when the cryptocurrency returns to $ 20,000. According to the above theory, Bitcoin should return "former glory" to the beginning of 2021. Recall that Cryptorbit Media has already published material about the supporters and opponents of Bitcoin (https://cryptobit.media/ru/news/other/982/) , who have repeatedly expressed their opinion about the market volatility. What do you think, will BTC return to $ 20,000?
Editor: Godfrid Brower