MoneyMagpie

Join MoneyMagpie today!
Log in or Register.
Aug 24

Predicting Bitcoin Price In 2020 – 2 Key Factors You Should Pay Attention To!

Reading Time: 3 mins

Bitcoin is volatile, meaning that its value goes up and down often. Anyone who decides to invest in Bitcoin does it, hoping to have an excellent return on their investment. Bitcoin was released in 2009, and throughout its short history, it has experienced ups and downs, a factor from which the term “volatility” is derived, which describes the nature of Bitcoin. And this is one of the main factors that has made Bitcoin attractive and more favoured than stocks, especially by youngsters.

The most famous Bitcoin crash known as the “Great crypto crash” happened in 2018. In December of 2017, Bitcoin had grown by about 2700%, setting a record high of $19,891. But, by November of 2018, Bitcoin fell by over 80% from its peak. 

Financial security is very important. A smart way to create wealth is by investing in Bitcoin. If you want to invest in Bitcoin but you are not sure if you will do well by trading manually, you can try automated trading. Crypto Engine is an automated trading software that will help you in your cryptocurrency journey by making things easier and earnings faster.

Bitcoin knows how to surprise, so here are two factors you should pay attention to have a better idea when predicting bitcoin price in 2020.

 

  1. Bitcoin Halving

On May 11, 2020, Bitcoin halving took place. Halving happens every four years, and it has a significant impact on the Bitcoin price. When Bitcoin halving happens, new bitcoins enter the circulation as block rewards, produced by miners. How does this affect the price of Bitcoin? Many believe that after halving, Bitcoin increases its value. 

But, we can look at the first two Bitcoin halving as precedent. In 2012, the price began to rise shortly after the halving, and in 2016 the price dropped by 10% but then rose back where it was before very quickly. But a year later, in 2017, Bitcoin price skyrocketed, setting an all-time high record.

 

  1. Coronavirus Pandemic

Coronavirus caused a lot of damage to the economy of the world. The pandemic did not leave Bitcoin untouched also. Bitcoin went down to hitting as low as almost $4,000 during the coronavirus pandemic. However, it quickly climbed back up, hitting $10,000 and at the time of writing the price of Bitcoin is just above $12,200 according to Coinmarketcap.

We are all tired from the pandemic, but it seems like it is far from being over. Experts are actually predicting a second wave coming later this year. So, taking into consideration what happened for the first time, there are chances that Bitcoin value could go down again later this year.

 

How to predict the Bitcoin price?

Knowing how to read the charts is a crucial factor in predicting Bitcoin prices. Experienced traders use technical analysis, where they analyze Bitcoin’s movements throughout its history. Moreover, they use their data based on their study to predict more accurately if the value of Bitcoin will increase or decrease in the future. 

It is also vital to study the history of Bitcoin since the release of it in 2009 to date. It’s the best way to understand what factors triggered Bitcoin price movements in the past and see if something similar can happen in the near future. Doing researchers and staying informed is very important. Following Bitcoin-related events, news, podcasts, live streams held by cryptocurrency experts, will give you an idea as to when is the best time to invest in Bitcoin.

 

Conclusion

Considering that Bitcoin halving happened this year, there is a chance that the Bitcoin price could go up. But with the coronavirus pandemic becoming a big obstacle for the economy of the world, things are not very clear. Although, cryptocurrency experts expect that the Bitcoin value will grow as according to them now we are going through a bull market. Picking the right time to invest in Bitcoin is crucial, but one thing is sure; people have made fortune trading Bitcoin. And the most surprised ones are sceptics who doubted Bitcoin at the beginning of its journey. They went even further calling it a scam or a bubble, but now they are investing themselves. 

 

WHAT DO YOU THINK?

0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Related Articles

Experian Financial Control
 

Make Money and Save Money

ideas for everyone
 
Send this to a friend