Tanya Abrosimova
Independent Analyst
- Bitcoin will spend the best part of the year in a range.
- A new peak will be reached by 2021.
A prominent Chinese billionaire Zhao Dong warns against overly optimistic stance towards Bitcoin as the bull trend has not started yet. He believes that Bitcoin will oscillate in a range limited by $4,000 and $6,000. However, the cost of the first digital currency may increase exponentially ahead of the halving scheduled in May 2020.
Bitcoin will climb slowly to $10,000 before the halving, and retrace towards $6,000-$7,000 afterwards, the OTC trader said n Weibo, a Chinese version of Twitter.
He also added that the new bull market wouldn’t start until speculators were worn out by the bearish trend and rangebound trading and the hype was gone. In the long run, Zhao Dong thinks BTC will hit a new peak somewhere between $ 50,000 and$100,000 in 2021.
Meanwhile, at the time of writing, BTC/ USD is changing hands at $5,224, having recovered from the intraday low at $5,145. The coin is sidelined with bearish bias amid technical correction from the recent bull run. However, the coin retains an upside potential as long as the price stays above $4,900. On the upside, the local resistance is seen at $5,350.
BTC/USD, 1-hour chart
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