What will happen to cryptocurrency in 2020 and 2021 – analysts’ forecasts

CONTENT

  • Bitcoin will rise in price, but not much

  • The dynamics of the first cryptocurrency remains unpredictable

  • Investors expect delayed halving effect

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Choosing a cryptocurrency to invest in is not easy. There are a large number of coins on the market, the supporters of which in every way agitate potential investors to choose a specific digital asset. Often, tricks and promises of fabulous riches are used, which rarely relate to the real possibilities of cryptocurrency..

Most of the opinions on the movement of coin rates on the network are presented by unknown traders and members of the crypto community. There is no reason to trust their forecasts. To solve the problem, the editorial staff of BeInCrypto collected the opinions of professionals on the prospects for investing in cryptocurrencies in 2020 and 2021.. 

Analysts’ forecasts for cryptocurrencies for 2020-2021

He shared his first vision of the possibilities for further movement of the digital asset market and individual cryptocurrencies with BeInCrypto Nikolay Klenov, financial analyst at Raison Asset Management.

The expert noted that the cryptocurrency market today, in his opinion, is extremely volatile and highly susceptible to manipulation. Based on this, he believes, it is rather difficult to predict the exact rates of cryptocurrencies for two years in advance. At the same time, Nikolai Klenov is confident that the demand for decentralized assets will grow. 

“Now bitcoin (BTC) is near a strong resistance level of $ 10 thousand, which in the forecast for 2020-2021 will be the level of strong support, i.e. the main trade will take place above this level. The estimated range is $ 10-20 thousand “, – the analyst summed up.

Also your vision of the prospects for the digital asset market presented by the chief investment director of GBIG company Rufat Abyasov. In his opinion, BTC is in the final stage of consolidation before reaching the first target in the region of $ 14 thousand. At the end of 2020 – mid-2021, if no catastrophic events occur, the expert predicts the growth of the bitcoin rate to the level of $ 26 thousand.

Bitcoin chart with the expected growth trajectory of the cryptocurrency rate, according to Rufat Abyasov. Data: TradingView

“The positive movement of the rate, in addition to technical indicators, will contribute to the recent halving Halving of bitcoin reduces the number of new coins created and earned by miners, in half. This happens approximately every four years and … More, as well as an increase in the number of institutions involved in this market. In addition, the active development and use of BTC options by miners allows them to hedge their risks. Cryptocurrency miners can better manage their production costs and protect themselves from market volatility, which will also support the industry, “the expert explained his vision of the digital asset market..

According to Rufat Abyasov, at the moment it is possible to draw a mid-term and short-term analogy with the behavior of the cryptocurrency market since the end of the first quarter of 2019. During this period, the bitcoin price was in the $ 5200- $ 5500 trading corridor.

“Now, as then, short-term margin speculators are diligently“ sawing ”, and I will not be surprised if, before exiting consolidation, the BTC price still draws us“ helicopters ”with a lower level of $ 8300- $ 8100,” the analyst said.

As written January 2020… $300,000 Bitcoin 2021‼‼‼

In this case, the main speculative game, in his opinion, unfolds around Ethereum (ETH). Rufat Abyasov drew attention to the fact that some major player has been gaining a long-term long position since February 2020. The process, he said, can be calculated by indicators. 

“In case of a full breakdown of the ~ $ 255- $ 260 level, we can see ETH at $ 360 by the end of the year. The positive external background around Ethereum will also contribute to this “, – said the expert.

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Rufat Abyasov recommended to investors not to forget about money and risk management. The expert also reminded market participants that investing in assets is always fraught with risks.. 

Forecasts of companies and popular members of the crypto community

Bitcoin remains the most popular cryptocurrency for making predictions in the crypto space. The fact is that the behavior of BTC affects other, less capitalized projects. Therefore, most often when making forecasts, popular participants in the digital asset market turn to the prospects of this coin..

Positive forecasts

Experts from the Weiss Crypto analytical agency believe that Bitcoin must break through the $ 10,000 level to enter a new phase of growth. Before touching the designated height, in their opinion, the cryptocurrency risks going down to $ 7 thousand. After reaching a local minimum, experts predict a rebound to the level of $ 12 thousand.

#Bitcoin looks ready to enter a new bullish cycle, but getting past the $ 10,000 resistance level is proving to be a significant barrier. Indeed, #BTC is likely to see $ 7,000 before it sees $ 12,000.

– Weiss Crypto Ratings (@WeissCrypto) May 19, 2020

At the same time, analysts at Weiss Crypto do not doubt the prospects for further growth of BTC. The long-term positive movement of cryptocurrency, in their opinion, is based on the policy of quantitative easing of the central banks of the countries.

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“The rise in the value of bitcoin is the only way to meet the increased demand for it. The question remains – will there be an increase in demand. Taking into account the promises of the Central Banks of the countries to print money endlessly, the only correct answer is yes, “the experts wrote in their microblog..

The blogger PlanB, popular in the crypto community, has also repeatedly spoken in favor of the positive movement of the bitcoin rate. The analyst is promoting his S2F model for predicting the behavior of BTC, which takes into account the ratio of stocks of not yet mined bitcoins to coins in circulation. According to this model, in the first half of 2021, the cryptocurrency will reach the level of 100 thousand.

PlanB analyst’s S2F model for forecasting the BTC rate

At the same time, the expert considers the level of $ 18 thousand as the closest goal for the bitcoin rate..

Bloomberg analysts also agreed with the opinion that bitcoin will continue its positive movement. In their research, experts analyzed the growth opportunities for cryptocurrency and came to the conclusion that in 2020, BTC is capable of doubling the maximum of 2019. Prospects for positive movement, in their opinion, are reflected in the coin’s resistance to negative impact. 

Experts believe that bitcoin has proven its effectiveness as an investment tool during the fall in prices in the financial market, which was recorded in March 2020..

What will happen to cryptocurrency in 2020 and 2021 - analysts' forecasts

Recall that last summer, bitcoin showed growth to the level of $ 14 thousand. According to the logic of Bloomberg analysts, during 2020 the cryptocurrency may rise in price to $ 28 thousand.

Many members of the crypto community also believe in the growth of BTC. For example, the CEO of Social Capital and the former CEO of FacebookIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social network project immediately attracted attention … More Chamat Palihapitiya believes that the coin is capable of reaching the level of $ 1 million. CEO of the BiKi Exchange platform Ethan Ng, in turn, sees the prospects for Bitcoin growth to $ 20 thousand in the near future.

Negative forecasts

Not all members of the crypto community are confident in the prospects for the positive movement of bitcoin. Despite the fact that BTC remains the most profitable asset of the decade, some experts are confident that the price of the coin is inevitable.. 

One of the constant critics of bitcoin – the head of Euro Pacific Capital Peter Schiff – believes that the cryptocurrency will fall. According to the expert, the most stable asset is gold. 

Over the past several years Bitcoin hodlers poked fun at gold investors because #Bitcoin gained so much more than #gold. Over the next several years those roles will reverse, but not because gold rises more than Bitcoin, but because gold moons as Bitcoin crashes back to earth.

– Peter Schiff (@PeterSchiff) April 11, 2020

Peter Schiff thinks investors who prefer BTC over precious metal are fools.

Economist Nouriel Roubini, who previously predicted the global financial crisis of 2008, also sees no prospects for Bitcoin’s growth. Ethereum turned out to be another cryptocurrency that attracted the attention of the expert. In his opinion, the fundamental value of ETH is zero..

Crypto-Apocalypse: Ethereum down 90% from the peak, in free fall and now close to the 2018 low. Still a long way from zero that is its fundamental value. Actually it is worth negative given all the toxic externalities of energy waste and pollution that its mining generates

– Nouriel Roubini (@Nouriel) November 27, 2019

Summing up

There are a large number of theories about the possibilities of further movement of the bitcoin rate. Each of the parties brings its own reasons. Despite this, none of the predictions provide guarantees that they will come true. To other conclusions:

  • Many participants in the digital asset market see prospects for the growth of the value of BTC. At the same time, their forecasts do not imply a rise significant in the price of the coin in the near future. If the popular PlanB analyst sees the prospects for Bitcoin to reach the level of 100 thousand during 2021, then most are inclined to predict a movement to a height of $ 20-25 thousand..
  • The behavior of the BTC rate is influenced by circumstances that cannot be predicted. In the event of an obstacle like the coronavirus pandemic, the cryptocurrency risks not realizing a positive movement..
  • Many investors believe in the rise in the value of bitcoin amid halving.

Forecasts should not be taken as investment advice. Investment decisions must be made independently, based on your own analysis.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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What will happen to cryptocurrency in 2020 and 2021 - analysts' forecasts
What will happen to cryptocurrency in 2020 and 2021 - analysts' forecasts
What will happen to cryptocurrency in 2020 and 2021 - analysts' forecasts

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