Though I don’t speak of bitcoin frequently as I do not consider my expertise to be in bitcoin versus gold/silver/platinum, here’s a very quick breakdown of the future price behavior of bitcoin. As we can see from the multi-year price chart above, bitcoin’s price recently broke above the 2-1/2 year downward sloping trend line, which is a bullish development. However, in the lead up to the bitcoin halving event on 11 May, the bitcoin price hit $10k, then dropped significantly into the halving event, and re-tested the $10k mark again, but failed to hold, which is a bearish event.
Though many bitcoin analysts have provided their usual outlandish price predictions, like Silicon Valley venture capitalist Tim Draper, who predicted a $250k price for bitcoin by 2022, one should never put too much stock into such predictions, as bitcoin investors always provide outlandish future price predictions that never come true due to their vested interest in the materialization of a much higher price.
For example, Tim Draper previously predicted that bitcoin would hit $250k by this year but then changed his prediction recently. Another of the most prominent bitcoin analysts that the mass financial media loves, Tom Lee, has been wildly inaccurate on his price predictions. In 2018, after bitcoin soared to $20k the previous year, he predicted bitcoin would soar to $25,000 at the start of the year, and doubled down mid-year to state that he still believed bitcoin would end the year at $25k. Bitcoin ended 2018 at less than $4k. In 2019, Tom Lee stated that he was only off by a year regarding his bitcoin prediction by claiming that 2019, not 2018 would be the year for bitcoin’s furious rebound and predicted that bitcoin would reach $40k in 2019. Instead, bitcoin topped out at a tad about $11,700 in 2019, making his 2019 prediction wrong by $28,289 per bitcoin.
For me to become bullish on bitcoin, it would have to regain the $10k mark, and remain above this price level for at least a week. On the downside, if the price moves back below the downward sloping trend line, then my sentiment would turn from marginally bullish right now, to bearish again. And if bitcoin descended to break below the upward trend line and then the $5,740 price level, then I would become strongly bearish at this point.
So there you go. As I stated, a very quick, easy to understand primer on future bitcoin price behavior from skwealthacademy. Make sure that you subscribe to our rss feed here to stay up-to-date with all of our skwealthacademy news publications.