The crypto market has started a resurgence. Will Bitcoin price break above $9,000 after touching its highest in 7 weeks? The following Bitcoin price analysis includes a Bloomberg report and our technical overview.
January 08, 2020 | AtoZ Markets – The world is concerned about the US-Iran crises. On Wednesday, the crises aggravated after Iran retaliated with attacks on US forces in Iraq. Investors are risk-averse as they move funds to safe assets. Bitcoin has also rallied on the back of this effect after improving by over 5% in the last 24 hours. Although there is a bit of debate whether investors consider Bitcoin a safe-haven less-risky asset. Nevertheless, the digital asset has jumped by about 31% since mid-December 2019. On Tuesday, it broke above the resistance levels between $7,700 and $7,900. On Wednesday, however, the digital asset is making a minor retracement to $8,200. What could happen next?
Bitcoin market dominance has increased to over 69% after a much better performance than the Altcoins this week so far. This has resulted in the entire market gaining about $24 billion since the current recovery started in December.
Bitcoin to appreciate in 2020 with an increasing adoption -Bloomberg Intelligence
Mike McGlone, Bloomberg Intelligence senior commodity strategist has said that Bitcoin will appreciate in 2020. Together with Tether, the two crypto assets will lead the race in 2020. Bitcoin ended 2019 with over 90% gain to end the year among the top gainers having finished the year better than the Altcoins aggregate. In a newly published report, Mike made some predictions which include the following:
- Bitcoin will resume the long-term range move but will be attracted to the roof of the range. The crypto asset is expected to surge and retest the $13,900 2019 high. In addition, it should not decline near the $3,300 low recorded in December 2018 prior to 2019 first half big rallies.
- Despite Bitcoin’s propensity to record significant gains in 2020, the broader market sentiment remains to the downside. Bitcoin will, therefore, continue the dominance and outperform most crypto assets. Competition for adoption among the other top coins will be tougher and thus keep their combined performance down or sideways at best. Altcoins performance will again solely dependent on Bitcoin performance.
- Advancing Gold price is expected to be the major driver of the Bitcoin bullish move. This is to assume that Bitcoin will gain some safe-haven identity of the yellow metal. The report added that Bitcoin is the digital and better version of Gold and should, therefore, follow Gold bullish run which is expected to continue throughout 2020.
- There will be wider adoption for Bitcoin and Tether in 2020. According to the report, ”Bitcoin and Tether are the primary assets that have succeeded since 2017”. In fact, Tether has advanced the most in terms of market cap and will most likely displace XRP off the 3rd spot.
Bitcoin price analysis: Elliott wave perspective
Bitcoin should rally in 2020. Its targeted fixed supply (21 million coins), the upcoming halving and maybe Gold bullish run (as a result of instabilities of the conventional markets) will cause the digital coin to resume the 2019 first half bullish trend. However, we are not sure yet whether the current BTC bearish phase has bottomed yet. In the last update, we expected the current rally to touch $8,500 as the chart below shows (Charting tools from TradingView).
We also discussed an inverted head and shoulder reversal chart pattern. However, the expected move was expected to be for the short-term. The new chart below shows Bitcoin surged to the roof of the ‘purple’ channel line as we expected
From $13,900 top, the market is eyeing a double zigzag bearish corrective pattern. Wave (b) of Y was expected to end around $8,500. If the Bitcoin price returns to $7,500, we should see the market follow this path to $5,000 or lower. Afterwards, the bullish trend could resume toward 2019 high. We will only consider the end of the bearish correction at the current low ($6,500) if the current surge continues far above the channel line and break above the $10,500 critical level.