Bitcoin [BTC] Price analysis: Analyst projects Bitcoin to $ 55,000 even when prices are below $ 4,200

Bitcoin BTC bullish price analysis
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Investors—regardless of their preference, are always jostling for best opportunities. It may be opportunity cost like what Bitmain plans to do in the Chinese summer when they unleash 200,000 units of its new AntMiner S11 and S15 taking advantage of low electricity costs. Their plan, analysts project, will bring them roughly $7.9 million per month.

All in all, the underlying objective here is superior ROI and profits not only to sate backers but to unwind losses of last year’s crypto winter. And there are reasons to be anxious especially when the price side of the equation is illuminated. Dropping digital asset prices was the last thing on investor minds when Bitcoin prices topped 20.000 $ by late Dec 2017.

Expectations of even higher prices were fueled by entry of CBoE—who recently backed off probably because of low volumes—and CME who rolled out Bitcoin Futures after approval from the CFTC. It was anticipated that prices would inch higher as institutional grade and other HNWI flow in but unfortunately, the exact opposite happened and prices caved in.

Now, the focus is quickly shifting to May 2020 Bitcoin halving where a crypto researcher, PlanB, project that the scarcity of Bitcoin would have a value-adding effect as demand increase, prices will adjust higher thrusting the overall Bitcoin market cap to above $1 trillion. With that kind of valuation, Bitcoin prices will be estimated at $55k apiece.

BTC/USD Price Analysis

bitcoin price bullish btc

At the time of press, Bitcoin prices were flat and up 1.2 percent from last week’s close.

Although this is bullish since BTC price action is still held within Mar 27 high low, the three-bar bull reversal pattern of Mar 25-27 hasn’t been confirmed meaning sellers of Mar 21 have an influence and would most likely spur liquidation. This is so because despite price upswings of Mar 27, accompanying transactions volumes were low—around 8k, and below those of Mar 21—11k.

Therefore, despite the divergence and expectations of higher high, patience is key and that calls for waiting until there is a sharp breakout above $4,200 or Mar 16 highs complete with high transaction volumes above those of Mar 21—11k.

Such a move will confirm the double bar bull reversal pattern of Mar 4-5 and the resulting close above would trigger demand as risk-off traders ramp up, fine tuning entries in lower time frames as participation finally drive prices towards $4,500 or Dec 2018 highs, an important resistance level.

All Charts Courtesy of Trading View—BitFinex

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision

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