The Crypto Digital Group has conducted an analysis price of Bitcoin over the course of 2019 and has used that data in an attempt to predict how Bitcoin will react over the course of 2020. Their prediction doesn’t look good for Bitcoin investors, to put it mildly.
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Bitcoin 2019 performance
Carlos Duat, CEO of the Crypto Digital Group provided more information about the performance of Bitcoin over the course of 2019. He admitted that 2019 was a better year than 2018 but he still believes that Bitcoin is in for a tough 2020.
He thinks that BTC is on a downwards trend and if it continues the cryptocurrency could find itself languishing in the Ranges of “$5,600 to $4,900”. This would represent an opportunity for new investors but would dismay many existing crypto enthusiasts.
An unstable market is driving bearishness
“For us, a more stable correction for the continuity of the upward price would have been 50% since the beginning of the January 2019 rise, but the bearish force broke those two levels 50% and 61.80% with a forecast of arrival at 78.60%, something that would take us back to the pending level discussed above of the ranges $5,600 / $4,900,” he specified.
Later he indicated: “These two ideas lead us to this, which we could also support with a Bitstamp graphic. Carrying a trend line we can see that the price is heading towards it to mark a possible ground again in the ranges $5,600 / $4900, adding a detail that repeats, which is the crossing of the 50 and 100 over the 200, a bearish signal that in 2018 led us to a drop of 60% and in the current case we only need to reach that area a 40% drop over BTC.”
Bitcoin technical analysis
Taking all this into account and adding that Carlos Duat continued within a descending wedge where the arrival to the $5,600 / $4,900 level have a 75% chance of happening. He remarked: “An ema 50 that continues to push the price down, an RSI that blocks at the 50% level, accompanied by a trend line respected since June, are more bearish symptoms that support the projection and our objective.”
Finally, in conclusion, he explained: “We are aware that BTC can take an unexpected turn, that we could contemplate the option of starting a Wave 3, and that a Bitcoin over $8,000 would change our scenario a lot. The rest of the analysis points us in this direction. We have to say that this is not an investment recommendation, it is our analysis and our point of view.
We don’t know how the arrival of halving can really affect. If we look at the past, Bitcoin’s price should go up, but in this immature market that is constantly evolving, it is normal that it does not always happen as expected and we have had examples of this. Based on technical analysis and our experience without the help of a crystal ball, we are inclined towards this idea. Time will tell.”
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First published in COINTELEGRAPH, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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