The price of Bitcoin is currently hovering around the $10,000 mark. It has appeared to reach a point of consolidation, without much movement either way. This is bad news for traders hoping to make a profit on the price of Bitcoin, but good news for those who are looking to see long-term growth in the Bitcoin ecosystem – the stability makes it easier for business owners to adopt the technology.
There are about 3 months to go until the end of 2019, and it remains doubtful that the bitcoin price will push up to $20,000 like 2017. There is little data to suggest that this could be the case.
Additionally, the advent of Bitcoin futures means that it is easy to suppress the price of Bitcoin if it becomes a threat. Many have pointed out that this is what happened on December 17, 2017. This is when the highest Bitcoin price was reached and also happened to be the time when Bitcoin futures were introduced.
It is nearly impossible to make accurate predictions about the price of Bitcoin. Numerous predictions have not manifested themselves. Tom Lee of Fundstrat, John McAfee of McAfee Security, and venture capitalist Tim Draper have all been wrong in their estimates, and they constantly revise them.
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On the other hand, nobody could have predicted the price rise, and many analysts such as Nouriel Roubini indicated that the price of Bitcoin was headed to zero – such analysts were spectacularly wrong. Many banking officials have also stated that Bitcoin was going to zero.
Both the bulls and the bears are biased in their respective opinions, ranging from $250,000 to zero. However, Bitcoin is reasonably priced right now and certainly has good upside potential, with a strong resistance level at $6,500 and no upper boundaries in terms of how high it rises.
Just because it is unlikely to reach $20,000 does not mean that it is unlikely to experience upward momentum. Bitcoin has been consolidating at the $10,000 mark for a while, and could easily be gearing for a move upwards. To do so, it will have to break resistance levels at $11,750 and $12,500, but this is entirely possible. The time leading to Christmas is always particularly volatile, even by the notoriously high standards of cryptocurrency products.
Of course, it could also head in the other direction. There is little in the way of long-term reliable data in terms of Bitcoin price movements. It does, however, have significant support levels at the $8,500 region. If it plunges all the way down to the $6,500 mark, then it will be an excellent buy opportunity moving forward, especially since 2020 is expected to be one of the most volatile years in history.