Bitcoin is back at it, shooting up through the charts with no stopping in sight. Following a short period of consolidation after falling from recent highs of around $8,400, Bitcoin began to surge again yesterday and has broken a new 12-month high. If the current rally continues, investors may see all of their 2018’s losses recouped.
As is customary when Bitcoin (or any other cryptocurrency) is going up in price, everybody has their opinion about where it might end. Traders, analysts, speculators, and average Joe’s all have different theories regarding the next ‘highest high’. Let’s have a look at some of the more extreme, and more rational, of predictions.
Bitcoin Price Predictions
One particularly optimistic analyst named Colin believes Bitcoin will reach $218,000 in this bull run. In a Youtube video, he explains the reasoning for his prediction as matching Bitcoin’s current price graph to that in previous bull runs. His prediction dictates that we are coming to the end of the accumulation period and are four to six months away when the rally really begins. Then, if he is correct, Bitcoin will reach $218,000 by January of 2021. This prediction has been echoed by previous analysts and fits in with expected price movements that would follow next year’s ‘halvening’ event.
Teddy (@teddycleps), a full-time trader and co-host of the CryptoMonsoon podcast, is not certain we are have seen a true trend reversal from the bear market. In a recent analysis on Twitter, he points out that $11,700 is the only point where we can be certain Bitcoin is officially in bullish mode. This is due to the fact that $11,700 represents the level that Bitcoin faced the most resistance after dropping below it following the 2017 bull run. Many commenters agreed that if BTC can break above the $11,700 point this time around, then we are definitely in a new bull run.
A more sobering analysis from veteran stock market trader Peter Brandt sees Bitcoin reach a meager $9,321 in this rally before ‘FOMO’ buyers are tapped out and a sizeable correction occurs. This analysis is echoed by Twitter trader @Walter_Wyckoff who also envisions a correction from the slightly higher level of $9,800. He notes that the common 40 percent correction that usually occurs in these rallies will take Bitcoin all the way down to $5,800.
As we should know by now, Bitcoin tends to have a mind of its own and while history indicates a strong possibility that it will follow previous trends, nothing is ever certain. At any given moment there are a number of external factors – like hacks, regulation, and institutional investment – that have the power to sway it either way.