HomeLatest NewsBitcoin to hit $20,000 this year, Bloomberg report claims

Bitcoin to hit $20,000 this year, Bloomberg report claims

June 5, 2020 By Benson Toti
  • Bloomberg Crypto Outlook suggests that only a catastrophic decline will prevent the top cryptocurrency from hitting levels close to the all-time high.
  • Bitcoin’s consolidation period above $9,800 will end with a breakout that could see it hit $20k in 2020.

Bitcoin likely to retest $20k

According to Bloomberg Crypto Outlook, Bitcoin is likely to crack $20,000 in 2020, as COVID-19-related quantitative easing and increased institutional buying could accelerate the cryptocurrency’s maturation.

The publication says that compared to traditional stocks and commodities like oil, Bitcoin is maturing at rapid speeds and that “something has to really go wrong for Bitcoin to not appreciate in value.”

Grayscale’s buying of Bitcoin has risen. Source: Bloomberg

Bloomberg also points to the rise in active addresses and notes that a breakout in unique active addresses above the previous 1-month high is a metric that precedes price surges.

In any case, the March 2020 crash provided the backdrop crypto possibly needed to reach for higher prices later in the year.

Recent price action

Bitcoin’s short-lived stint above $10,000 saw it dip to $9,300 this week, before failing at several attempts to break the psychological level again.

As can be seen on daily charts, the decline appeared to have been largely driven by volatility, and there remains a big chance Bitcoin could recover and push for higher highs above $10,000.

Although price against the US dollar has been slow on the upside, bulls retain the upper hand and the $10k level is the prize going into the weekend and after the latest difficulty adjustment.

As of press time, BTC/USD is exchanging hands above $9,700, with potential for minor downturns that might push prices to yesterday’s low of $9,505. However, having touched an intraday high of $9,855, a close above this level could be all the bulls are aiming for today.

Parts of the market currently have bullish sentiment, but any upsides are likely to remain capped around $9,850 considering the reduced volatility.

BTC/USD technical outlook

Bitcoin is trading above the ascending trendline and the technical picture points to potential sideways trading above $9,800. RSI is pointing north having moved up from lows of 44 in May and currently oscillates just below 60.

On the downside, Bitcoin is trending above the 50-day and 200-day SMA, a scenario that makes it unlikely for bulls to cede complete control to the bears. According to this analyst, Bitcoin is in an ascending triangle and will print high prices in the coming weeks.

Fig 1: Bitcoin price daily charts. Source: TradingView