This is the first time, in 17 months, we've seen Bitcoin hit these kinds of high prices. The interesting thing is that it looks like there is STILL a whole lot more upside on the cards for it.
Today, I'll give you four major reasons and show you why I expect Bitcoin's price to double in the next few months.
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Reason #1: Investors are piling into Bitcoin as giant companies are accepting crypto-currencies
If you can't beat ‘em join ‘em.
In 2019, it’s really been a year for crypto-currencies, as we’re now seeing major companies like Facebook (launching Libra
), PayPal, Shopify, Microsoft, Fidelity, and even Subway accepting crypto-currencies into their business models.
This boost of confidence, is enticing retail investors to buy major crypto-currencies like Bitcoin.
In fact, according to Google Trends data for Bitcoin searches, shows that there is a rise in the number of retail investors buying Bitcoin which is helping push up the price.
Reason #2: Bitcoin is starting to take over the world
Did you know that already there are over 5,006 Bitcoin ATMs, or BTMs, in 90 countries?
Crypto-currency users are now able to buy or sell bitcoins as more companies are accepting them as cash for investments, products and services.
Before you know it, we will be making Bitcoin transactions on a daily basis.
Reason #3: Why Bitcoin 'halvening' will push the price up even higher
Every four years, the rewards to 'bitcoin miners' are cut in half.
In short, normal and super computers try to solve complex math problems, to create and validate bitcoin transactions. Based on the processing power, whichever computer wins the complex mathematical formula, gets rewarded in bitcoins.
Due to the limited supply of just 21 million bitcoins, the more bitcoins that are mined means that there will be less available to mine in the future.
Due to its scarcity, there needs to be strict measures involved to make acquiring bitcoins a more difficult task. As things stand, the miners are rewarded at 12.5 bitcoins. And to keep inflation in check, every four years the rewards to bitcoin miners are halved.
Experts say that by May 2020, the reward per miner will be cut in half to 6.25 new bitcoins.
From an economic point of view, the 'halving event' has a bullish impact on the price as it lowers the inflation rate on Bitcoin.
Reason #4: An even larger Rounding Bottom pattern could send Bitcoin to $20,068
In the previous article, I explained how Bitcoin formed a small Rounding Bottom and that the price was set to rally to $11,890, which now it’s already passed the $13,000 mark. If you want to understand how the Rounding Bottom pattern works again, you can read the previous Bitcoin article here.
Looking at the next chart, it looks like an even larger Rounding Bottom pattern has formed which is ready to shoot the lights off of Bitcoin.
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I’m talking over $20,068 per Bitcoin
Looking at the daily chart of Bitcoin, we can see the Rounding Bottom (Black Line) since April 2018 has now broken above the strong ceiling level of $11,695 (Pink Line).
This means, as the price momentum is still up and demand continues to fill the market, we can continue to see Bitcoin rally.
We’ll use the Top-Down approach to calculate the next Rounding Bottom target price.
Target = (Top of Rounding bottom – Bottom of Rounding bottom) + (Top of Rounding bottom)
= ($11,695 - $3,322) + $11,695
This means our next target for Bitcoin is set to rally to $20,068.
“Wisdom yields Wealth”
Analyst, Red Hot Storm Trader