- Another $100,000-by-the-end-of 2020 forecast hits the market.
- In real life, Bitcoin continues moving in a range with a bearish bias.
Bitcoin (BTC) market is painfully slow today. The first cryptocurrency dropped below the local support of $7,300 to trade marginally above $7,200 during European hours. While the first digital asset struggles to come up with a clear direction, cryptocurrency enthusiasts are looking for evidence of upcoming dramatic growth.
Recently, the founder of Silk Road, an online black market, Ross Ulbricht, suggested that Bitcoin has the potential to reach $100,000. He applied Elliot waves to Bitcoin's charts to come up with this conclusion.
After an extensive analysis, he concluded:
"Thus, we have a price and target for the end of wave I of ~$100,000 some time in or near 2020. However, there is no rule that market moves have to be proportional. This is just a pattern we see unfolding that may or may not continue. I should also note that these estimates are based on readings of the price of a bitcoin in the distant past. The best I can find is not very precise. If you have more precise numbers, please them in the comments with your source."
However, such forecasts are quite common in the industry. Thus, recently, a famous cryptocurrency trader Peter Brandt also forecasted that Bitcoin would reach $100,000. The same view is shared by ac co-founder of Morgan Greek Capital Antony Pompliano, while a venture capitalist Tim Draper expects to see BTC closer to $250,000 by 2023.
BTC/USD, the technical picture
On long-tern charts, BTC/USD is moving within the downside channel. The sloping resistance line that comes all the way down from this year's high of $13,862, serves as a critical resistance that separates BTC from a new bullish trend. Currently, it is registered at $9,000. Once it is broken, the bullish sentiments will start snowballing with the next focus on $9,700 ( 38.2% Fibo retracement) and psychological $10,000.
However, before we will have to pass quite a number of other resistance levels before we get to $9,000. SMA50 (Simple Moving Average) daily at $8,300 and 50% Fibo retracement at $8,400 may slow down the recovery, once it starts unraveling.
BTC/USD, the weekly chart