AM Broker predicts Bitcoin may hit $60,000 in May 2020
What you need to know:
The prediction is supported by both fundamental and technical factors, and there is enough evidence to suggest that the huge price targets are not just a fantasy, but are very close to becoming a reality.
AM Broker’s s cryptocurrency-focused department is calling for an imminent and rapid rise in bitcoin prices from here onward.
The prediction is supported by both fundamental and technical factors, and there is enough evidence to suggest that the huge price targets are not just a fantasy, but are very close to becoming a reality.
The fundamentals
The fundamental price prediction model is based on scarcity—i.e. how few bitcoins there are left to be mined. The model estimates that Bitcoin's price could reach as high as $60,595 by May 2020, six times its current value of $10,000. This would place Bitcoin's market capitalization at almost $1.25 trillion.
The prediction model is largely based on extrapolating Bitcoin's previous price performance—into the future. Another key factor AM Broker says will determine price is Bitcoin's block reward halvings–the next of which is due in 2020. As the reward for mining blocks is cut in half, the price of Bitcoin is due to go up.
AM Broker found that the Bitcoin price tends to peak about a third of the way through each halving reward cycle—each peak beating the previous. If this were to continue, this means that Bitcoin would find its eventual ceiling sometime in September 2021–surpassing the $60,595 number it quoted originally.
But obviously, this would require a large inflow of money—perhaps $1 trillion—to enter the market, to boost prices. AM Broker speculates that it could come from investors looking to hedge against government currencies. This has been widely discussed in crypto media, with many suggesting that a U.S.-China trade war or further geopolitical tensions in Hong Kong could drive investors towards Bitcoin.
The technical
The technical price prediction is based on the fact that every bitcoin bull cycle has been longer than the preceding one
.
AM Broker estimates that we are just 25% in the current bull cycle until the price of bitcoin hits its next peak.
Once the price of bitcoin goes above 11.700 it will find little resistance and breakthrough to highs that we have never seen before.
There are a lot of debates right now about whether the price s going to move up above 10k or break below 10k before going up again.
The reality is it does not matter, explains AM Broker crypto research team.
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