Bitcoin closes Q4 with losses – two important catalysts for a rally in Q1 / 2020
Bitcoin closed the last business quarter 2019 at a loss. The crypto currency number 1 is in the quarterly comparison by approx. 21 , 5 percent decreased. The decline has the semi-annual losses on 33, 35 percent expanded.
Still, exponential gains held positive for Bitcoin in the first two quarters. From January 1 to the time of writing, the cryptocurrency has increased by more than 95. Long-term performance keeps the market's interest in the system alive.
One of the reasons is Bitcoin's ability to maintain certain technical support levels in December 2019. In more than two cases, the range is between $ 6. 400 and $ 6. 500 the strong downward attempts of the bears were rejected. Every time Bitcoin tested the area, the bulls pushed it up again.
This increases the likelihood that Bitcoin will be over $ 6 in the first quarter 2020. 400 – 6. 500 will remain.
# 1 upward factor: macroeconomic events
Apart from the technical barriers, Q1 / 2020 is also important with regard to various macroeconomic events. So US President Donald Trump announced today that on 15. Will sign the “Phase One Deal” with China in January.
Historically, a positive move to end the US-China trade war has prompted investors to park their capital on the stock markets. Such emigration minimizes investors' appetite for security investments. Bitcoin, which served as a safe-haven instrument at the height of the trade war in May, is likely to move towards 6 under the mini-deal agreement. 000 – 6 . $ fall.
Social media have argued that a decline towards $ 6. 000 would make Bitcoin attractive for a replenishment. Since the top market analysts consider phase one unaffected, investors would likely return part of their capital to the hedging markets.
“A comprehensive China / USA deal is still a long way off, as far away as last year's Bitcoin lows,” writes Clem Chambers, CEO of the private investor Website ADVFN.com.
“So there is still no guessing what will happen next in the trade conflict and therefore the short-term price of Bitcoin.”
# 2: Halving
The mood on the Bitcoin markets is expected to improve at the end of Q1 / 2020. The so-called accumulation phase could move the price towards 8. 000 Let $ rise as the halving approaches in May 2020.
Then Bitcoin offer rate of 12, 5 BTC to 6, 25 BTC decrease. With a 99, 6% success rate of a price rally after halving, Bitcoin has a better chance of ending 12020 new record highs.
The event receives sufficient attention in media such as Bloomberg, WSJ and Financial Times. While almost every report doubts that an average Wall Street investor would speculate on halving Bitcoin, it is undisputed that after its exponential rally in the year 2019 has become “more mainstream”.
“If you think about the wealth of this country, it is in the hands of 50 – to 80 – year-olds, not from 20- to 30 – year-olds, ”said Mike Novogratz, CEO of Galaxy Digital Holdings for the WSJ.
“We have not yet let this group participate to a large extent.”
Proof of text: newsbtc