Bitcoin has been on a roll of late. After the crash in March that replicated most stock markets, the pioneer cryptocurrency has steadily recovered to attain year highs in the past few weeks. For a currency that does not benefit from the stimulus packages most banks and economies relied on to stay afloat, this is truly remarkable.
The coin operates outside the mainstream and does not have the backing of elitists and globalists. It is truly a people’s platform as it can only survive with the backing of its dedicated community.
As such, this useful guide provides a useful resource on anyone seeking to have a forecast on how Bitcoin will close the year.
Much like the entire year has been, the last four months of 2020 are uncertain. There are many different voices on vaccines, lockdowns, and their usefulness. People want to know the truth, which at this time is a challenge with the trusted stakeholders in society proving ever more unreliable.
Bitcoin is a beacon of hope in this era. It is one truly underground movement that has shaken off all critics and doubters to become the global coin it is today. At press time, the value of one Bitcoin was about $11, 500 a massive uptick from the lows of March. For Bitcoin to achieve this without any sort of government stimulus is truly remarkable.
Factors to watch
Bitcoin trading takes place in unique exchanges that offer professional services. Large exchanges like PrimeXBT offer a fantastic platform and seamless orders for new users.
If you are looking to forecast how Bitcoin prices will fare towards the end of the year, these are some factors that could shape markets:
- The dollar losing some strength
The US Dollar has lost some of its dominance and profitability in recent months. The struggles in the American economy have seen the dollar slide against some of the world’s reserve currencies.
Some analysts have described the dollar selloff as “relentless.” In times of crisis, people look at alternative ways of storing value. Bitcoin just so happens to be a lucrative option for investors. The coin benefits in the same way gold does. Besides being a currency, some look at Bitcoin as a store of value during periods of fiat uncertainty.
The fact that interest rates are low, the US election coming up and other economic uncertainties don’t bode well for the dollar. Bitcoin is well-positioned to capitalize on a prolonged slump. Should the USA experience the inflationary pressures common during a recession, Bitcoin can be a great hedge asset for investors.
- Correlation with Gold
Gold is trading at prices reminiscent of the financial crash of 2008. Remember, gold is one asset whose value goes up during times of crisis. Its scarcity offers a safe haven quality against the excesses of fiat printing that got the world in financial trouble many times over. In the past few months, there has been incidental evidence of gold and Bitcoin rallying in a correlated manner.
Should gold prices remain high, or even go higher, this could be indicative of a strong end of year momentum for Bitcoin. The correlation is that investors look at both as alternative assets that they could invest in when they don’t have faith in mainstream assets like stocks. Anyone keen on Bitcoin investments should keep tabs with gold price trends.
The difference is that gold is a more legitimate asset; in the acceptance sense. Many developing countries have shored up their gold reserves in the past decade to escape the influence of the US dollar and Western financial control.
- Bitcoin price consolidation then rally
Looking at the Bitcoin price history on PrimeXBT, you will notice periods of relative consolidation. There is little resistance between the current prices and all-time highs.
Should there be a consolidation, it could be indicative that investors are generally taking stock of their profits before deciding whether to invest more.
Such a consolidation might be indicative of an upcoming rally. Usually, when prices fall, it is usually fast and furious.
Consolidation over a few weeks above the $13,000 mark for instance may bode well for prices towards the end of the year.
Bitcoin is a story of resilience and the power of the grassroots. There has never been a more successful challenge to the all-powerful global financial elites. Investing in Bitcoin is partly a belief in taking power back to the people.
It has done remarkably well without much acknowledgment for the media or politicians. No one has the power or means to shut it down, which is a big win for all people who believe in freedom.
Moving forward, it will remain a force to reckon with. The few months to end the year may be a glorious period for Bitcoin investors.