Financial analyst predicts Bitcoin’s all-time high in 2020

Popular financial analyst Bob Loukas has made his Bitcoin predictions for the upcoming year. He tweeted:

Bitcoin closing near the $7k area were my thoughts 12 months ago in my first video.

If #bitcoin bull narrative remains true (which I believe), we should see $BTC begin turn higher over next 2 months. Then a solid steady climb towards ATH's by the end of 2020. Exceed in 2021.

The “bull narrative” that Loukas refers to is an important factor in much of the price prediction data. Many industry experts believe that Bitcoin will eventually grow in market cap to extremes. This position holds that the global movement of central banks will create economic stagnation with a strong inflation. As investors liquidate positions in losing equities, they will turn to stable assets, which are unaffected by inflation. Bitcoin is one of these assets. A narrative like this sees a consistent growth moving forward. Despite some periods of loss, the overall movement is seen to be positive. The movement is largely driven by adoption. 

However, there are many counterpoints to this. Firstly, the actual use cases for Bitcoin may be more limited than previously estimated. When transaction fees increase, the cost for small payments becomes too great to justify. Secondly, the potential for government controls is substantial. The need to exercise control over financial transactions may force governments to limit the usage of Bitcoin. Finally, the concern that the market will turn lower first is a real possibility. 

Loukas hedged his statements with the potential for bearish trends as well. He said:

In the absolute bear case, after a 6-month downtrend, expect a counter-trend move towards $10k-$11k before another big downtrend. If you think you will FOMO buy $10k then buy it now instead.