The Bitcoin market, which, for testing, has had a rather peculiar and positive year, will continue to grow steadily until a new expectation and economic opportunity. In this post I have taken the assignment to explain five reasons why I believe that it will break the psychological barrier of $ 20,000 and reach an incredible price up to $ 25,000. It should be noted that this entire project is possible thanks to recent events, by this I mean news, trends, covid-19, presidential elections in the United States, financial uncertainty and much more.
Superbitcoin - Photo edit made in Photoshop CS6 of my belonging
1. Economic sentiment and expectations in the market
The economic sentiment is born from an open, jointly, psychological possibility that in turn conditions the expectation. What is the expectation of Bitcoin or cryptocurrencies? at this time to overcome the barrier of $ 20,000 after that start a second uptrend that allows a rebound to 25K. However, all this approach could be possible as soon as the trend is confirmed based on $ 19,000, since it will be at this approximate amount that the market will confirm or deny this theory.
The bullish sentiment can be measured thanks to the joint collaboration of many investors in the market and their offer, that is, the translation of recent events, referring properly to the uptrend, can be valued or translated as an agreement and massive purchase of investors, who promote the crypto economy; since times past, bitcoin and other markets have had crucial moments in the history of their trade route, starting from certain key or famous points that corroborate trends and allow them to continue. For this reason - I constantly insist - that our first goal must be centered on 20k - if we want to reach 25K - first it is necessary to walk, then we can take risks.
2. The symmetric bullish triangle
The symmetric bullish triangle is a technical analysis that can be seen directly in the charts, many traders have commented that thanks to its appearance, the historicity and trajectory of Bitcoin have marked a strong liking for the bullish current, with this I make it clear, that part of the trend and its movements are caused by the bullish symmetric triangle, which conditions the graphs, as well as its movements in positive surpasses.
I must warn that the praxeology of this triangle is limited, because at any moment, the price could fall, and in doing so, it would confirm a new downtrend, if it were to break the symmetrical triangle. To break it, Bitcoin must cause a decrease in the price in the market equivalent to the psychological point or the psychological barrier of $ 15,000, confirming in turn a downward trend and volatility of the material price.
But, if we do not break the triangle, we will continue to freely rise, since the price of Bitcoin will continue to grow until its probable break at 19k or 20k
3. Bitcoin's annual growth in price factor
It is said in the world of cryptocurrencies that "Bitcoin never disappoints" this speech is closely linked to the annual growth rate and profitability of the cryptocurrency, that is, each year that Bitcoin goes by, it rises in price due to various factors, value, supply, demand, complexity of the mining alogorithm, news and events of notable relevance; However, Bitcoin as an annual investment never leaves traders helpless, that is, in any of the previous years, acquiring Bitcoin in the months of March or April could show a drop or low profitability -as the count of Montecristo would say- "Wait and trust"
This theory can be confirmed by reviewing the history of previous years regarding Bitcoin and its material price since 2016, showing that if we buy in the month of March and sell in the month of September, we can even receive gains of 20% per year, which really In the world of economics with investments of $ 300,000 or more there is a lot of money potential. This theory also manages to anchor itself as one of the biggest problems of Bitcoin itself, because it allows the multiplication of wealth in very simple methods. Do you want to be a millionaire? buy Bitcoin in March and sell in September, repeat the process until you get rich.
4. Bitcoin as a safe haven currency for nearby investments
Recently, Bitcoin has not only served as a medium or long-term investment, on the contrary, its short-term fruit in recent weeks is what has been able to attract new and promising investors, its investment mechanism, trajectory and profitability are themselves themselves an inexhaustible source of opportunities. The risk could be present in the 19k falling back into a dilemma of what could happen, that is, what next? If the calculations do not fail me, then we could be appreciating at the end of this year a Bitcoin man sitting on a throne celebrating the month of December while it is around 23 - 25k but with the study of pimp after completing the confirmation stage. Let me explain, we are in an upward trend, it is evident, but this trend cannot by itself lead us to exceed 21k in the real price, on the contrary, as a faithful companion will guide us until 19k, after that event we will need a second upward trend or that at least the symmetric triangle is maintained to confirm new entries in the market, it is worth mentioning that the risk factor will be very attentive to all this economic crossroads.
But there is no doubt, Bitcoin has recently allowed short-term investments to be extremely profitable, a risk that is taken for a very considerable profit. It is a passive, safe and constant savings mechanism, that is what most investors who work in and out in the short term are looking for!
5. The psychological value of the investment
Throughout economic historicity we have seen different "barriers or psychological points", let me explain more easily, these points are those that manage to confirm or deny market trends, I mean that without them investing in the stock market, cryptocurrencies, stocks, or other markets would be a tighter job. With the psychological points we can determine a variety of interpretations and situations: economic instability, volatility, security in the market, oversold, overbought. As I have said throughout the article the next psychological point is at $ 19,500 after that, we will have to wait for confirmation for a new entry from 20k to the moon. If this prospect is not made, we will fall into a break in the trend and the symmetric triangle to 15k and then into a downward trend.
There is the possibility that Bitcoin will do as many have suggested "pull back" because the recent analysis of the stochastick indicator determines that we are in an overbought period, and a correction must occur to continue the trend.
WARNING can this correction be the one capable of breaking the symmetric triangle? that's the unknown.
Without further ado, remember that this contribution is simply a theoretical development made by me, I do not have the absolute reason, I can be wrong, so I do not recommend trusting 100% of the content printed in the post, on the contrary, I advise that be you judges and protagonists of economic reality, guided by academic studies, third-party references or other financial investment mechanisms.
Extreme care when entering the 20k because, as I stated several times, we are overbought, the price can fall violently.
Remember to put your Stop loss into practice for an emergency exit. As the ancient Guru of cryptocurrencies used to say "Neither Satoshi knows"
- Crypto Zudaca 2017