3 Major Reasons That Show Bitcoin Will Rise Exponentially And Reach USD100,000 By The End of 2020

The Halving Will Have A Massive Positive Psychological Effect On Traders

We all know that trading is based on how mass psychology works. Basic economics shows that less supply will mean that the price for a particular service, comodity or stock will go up. The Bitcoin Halving, an effect which will effectively see the bitcoin supply which is mined daily be diminished by half.

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This event is expected to happen during early May 2020 and is programmed automatically in the bitcoin code to ensure that the supply is controlled and the successful miner finding the new block is allowed by the rest of the network to reward themselves with newly created bitcoins and transaction fees.

Bitcoin was created in a way to ensure that the total number of bitcoins could never exceed 21 million. New bitcoins are created roughly every ten minutes and the rate at which they are generated drops by half about every four years until all will be in circulation

All this means that people will expect the price to go up since supply will diminish. People will buy, others will see the price rising and will expect a bull run, effectively helping the price to go up and up until it starts going Parabolic.

Trading on Bitcoin Futures is Positive

Now that Bitcoin is being traded on the Futures market we can have an idea of what fund managers and long term investors are expecting. First of all we are noting that volume on such Futures trading platforms is increasing continously. This shows that major investors are using such tools to invest in bitcoin.

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The strength of a trend is usually gauged by open interest, not just price. It is evident at the moment that such open interest is positive amongst institutional investors and even sophisticated investors, who up to a few years ago wouldn’t go anywhwere near bitcoin, are asking how they can invest in Bitcoin. Fund managers will most of time use the Bitcoin futures market to hedge and ensure a good rate of return for their strategy.

Judging by this, Bitcoin’s price rally which started during the early days of 2020 looks set to continue and even increase.

Technical Analysis Confirms Bitcoin Will Go Parabolic and raech up to 1000,00 USD by the end of 2020

Major trading indicators are showing that Bitcoin will go parabolic. Technical analysts say that such indicators have never been showing a bullish trend like this (meaning that the market is expecting the price of a particular asset to rise)

Technical analysts using trading indicators, both proprietary indicators and also public indicators reliant on price metrics such as Macd, RSI and momentum indicators show that a positive bullish sentiment is trending.

During the last major Bull Run when prices reached an all time high close to 20,000 USD, bitcoin was still in it’s infancy, this occurred during the late part of 2017, now Bitcoin has matured and there is no reason why this next Bull Run shouldn’t reach at least 5 times the meteoric rise which saw bitcoin reach the last all time high.

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Should you buy bitcoin now?

Trading theory states that you should buy when a price is low and sell when a price for a particular asset is at it’s highest.

Well most technical analysts agree that the price is around it’s lowest at the time and is expected to rise exponentially during the next years, so what better time to buy bitcoin other than right now?

The investment in Bitcoin can lead to loss of money over short or even long periods. The investors in Bitcoin should expect prices to have large range fluctuations. The information published on this article cannot guarantee that the investors in Bitcoin would not lose money and information provided should not be construed as investment advice. You should always do your research before investing, never investment more than you can afford and if in doubt you should seek the help of a professional investment advisor

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