Bitcoin Price Forecast 2020:
- Despite falling roughly $6,000 from its June peak, Bitcoin[1] was one of the best performing assets in 2019
- Nearly devoid of bullish sentiment in the second half of the year, BTC/USD[2] will round out 2019 with a yearly return of about 90%
- With that in mind, it may be worth holding some of the cryptocurrency in 2020 in the event bullish sentiment returns, although the nearer-term outlook remains in question
Bitcoin Price Forecast 2020: BTC/USD Lacks Bullish Sentiment, For Now
Bitcoin was one of the best performing assets in 2019, enjoying an incredible rally in the first half of the year which saw it rocket past assets classes like equities, traditional currencies and commodities. On pace for a 90% return in 2019, Bitcoin once again displayed its uncanny ability – an ability which has drawn criticism from some – to undergo wild price swings. Consequently, Bitcoin may deserve a spot in your investment portfolio in 2020 as a sort of “x-factor” investment given it fits within your risk tolerance and broader strategy.
Bitcoin Price Chart: Daily Time Frame (January 2019 – December 2019) (Chart 1)
To be sure, the shorter-term outlook for Bitcoin remains unencouraging. Slipping more than $6,000 – or about 170% - since its June peak, BTC/USD has fallen beneath a series of trendlines and support levels that have left its current valuation difficult to defend. Clinging to support around the $7,000-mark, Bitcoin bulls and optimists have offered a series of rescue efforts that have kept price afloat, but bearishness persists, and fundamental drivers appear few and far between.
Previously enjoying a boost from currency-crises and economic uncertainty in emerging markets[3], many issues in at-risk economies have receded which has seen Bitcoin’s
