Will Bitcoin Hit 20,000 Before 2020 Ends?

During 2020, the value of the cryptocurrency Bitcoin (BTC) has surged by about 170%, but it rose by only 6% recently. Despite this, its price has reached an all-time high, making it a potential candidate for another record-breaking high by the end of the year. However, if Bitcoin does hit 20,000 before the year is over, there might be some bumps on the road ahead.

Short-Term Volatility and Consolidation

The recent rapid rally in the Bitcoin market is expected to give way to a breather. According to analysts at BuyUcoin, the cryptocurrency may consolidate for a short period before continuing its rise toward the end of the year.

“A sell-off is likely in the short-term as many investors and traders will just attempt to profit,” said Kadan Stadelmann, a financial analyst. This aligns with market sentiment, as Finance Magnates noted that while stock prices have been stagnant, Bitcoin has produced gains recently.

Tech Analysis and Market Trajectories

Technical analysis suggests that further notable gains in the short term are unlikely. The 60% rally from 9,800 to 15,900 seen over the past two months looks highly overvalued according to the charts. Both the 14-day and 14-week relative strength indices are hovering well above 70, indicating overbought conditions and the possibility of consolidation or a minor pullback.

February Prediction

Considering the current upward momentum, some financial experts predict that Bitcoin will reach around 21,000 by February. For instance, in my view, reaching 21,000 will take approximately two months, with a strong possibility of this occurring before February.

Long-Term Outlook

Despite the short-term consolidation, there is a strong likelihood that Bitcoin will continue its upward trajectory. Samuel Kruger, CEO of CoinZoom, predicts that the market will establish above 20,000 in 2021, with further upward trends potentially reaching the 30,000-40,000 range.

Other factors such as a weaker US dollar and political uncertainty in the United States are also expected to support Bitcoin’s rise in the long run. However, any major setbacks should be well-supported above 8,000, according to financial analysts.

With all signs pointing towards continued growth, Bitcoin investors remain optimistic. Jehan Chu, co-founder and managing partner at Hong Kong-based trading firm Kenetic Capital, believes that investor sentiment is at an all-time high and that Bitcoin could flirt with 20,000 by the end of the year, with projections even reaching 50,000-80,000 by the end of 2021.

As of press time, the cryptocurrency is trading near 15,665, representing a 2.3% gain on the day according to the BuyUcoin Bitcoin Price Index.