According to financial Analyst Bob Loukas Bitcoin could reach up to the end of 2020, a new all-time high (ATH). The self-proclaimed “Cycle Trader” has published the forecast on Twitter, after his “Bitcoin-for- $ 7,000-prediction was confirmed” for the end of 2019.
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Towards the end of the year, many analysts make predictions for the coming year. Loukas is no exception. Its forecast for 2019 that Bitcoin will close in the range of $7K, proved to be correct, and so is now being given its new ATH-forecast also attention.
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The Bitcoin Narrative
Interestingly, the “COP Narrative”, to which Luke refers is way, a driving force in a large part of the price forecast data. Many Bitcoin believers are of the view that the Coin will continue to grow in terms of market capitalization one day, virtually to infinity.
This Position States that the Central banks worldwide will cause an economic Stagnation coupled with high Inflation. If investors positions in shares, to liquidate losses that they took refuge in the stable, the Inflation prospective assets are looking for. Bitcoin is one of these assets, often referred to as “digital Gold”.
This Narrative sees a steady growth in front of him. There may be periods of losses, but the overall movement will be positive. This movement is mainly driven by the acceptance, as more and more users use Bitcoin, which increases the demand and hence the price.
What speaks against it
The obvious answers are many and varied. Firstly, Bitcoins are actual use-cases may be much more limited than previously assumed. If the transaction fees are the cost of small payments to large to justify them.
In addition, the potential for state control, or even Bitcoins Ostracism is significant. The need for a strong control of financial transactions that may prompt governments to the use of Bitcoin to severely restrict. Chinese regulations are a good example of this.
And finally, the concern that the market will fall initially, there is a real possibility. Loukas itself backs up his statements with the potential for bearish Trends.
In the absolute bear case, after a 6-month downtrend, expect a counter-trend move towards $10k-$11k before another big downtrend. If you think you want to FOMO buy $10k then buy it now instead.— Bob Loukas (@BobLoukas) December 26, 2019
The reality: The predictions are sometimes true, bitcoin Performance for the next year, however, unclear. An ATH would inspire the Bitcoin maximalists, but many factors can influence the result.
In addition, Bitcoins future can be influenced by a massive number of factors. Global markets, government controls, and user acceptance can cause unpredictable changes in the market. The future is, as with any other investment, is anyone’s guess.