Bitcoin Predictions
It is always interesting to keep an eye on the price of Bitcoin because in the past we have seen some crazy price swings.
Indeed there was a time when it rocketed up to around the $20,000 level and so-called experts were throwing out outlandish price targets.
For example, venture capitalist Tim Draper set a price target of $250,000 and John Pfeffer (a partner of Pfeffer Capital) set a price target of $700,000, while the controversial figure John McAfee suggested that the price of Bitcoin could even hit $1,000,000 by 2020.
Maybe these predictions will come true in the future, but at the moment they seem absolutely crazy based on the recent price action.
Bitcoin’s Recent Price Action
The chart below shows how the price of Bitcoin has moved since April, and it is clear to see that there has been a steady decline downwards.
There have been times when the price has surged higher, but nevertheless the highs have been getting lower and lower, and just recently the price seems to have been stuck in a sideways trading range between around $5800 and $6600, with no real momentum to take it higher.
This week we have seen a little more strength with the price now trading at $6776 at the time of writing, but it is still far too early to call this a bull run.
Upward Price Breakout / Trading Opportunity
If I was looking to trade a possible breakout, I would look for two events to occur.
First of all, I would want the price to close above its most recent September highs ($6774) because this would push the price above the most recent trendline and potentially signal a short-term breakout.
Secondly, I would want to see the longer term trendline being broken because this would show significant strength, and may possibly bring a wave of new buying because it would encourage traders and investors to buy into this upward price breakout.
For these two things to happen, the price of Bitcoin is going to need to break through the $7000 level, and possibly as high as $7200 or $7300 (depending on when it occurs). However this is still quite a big ask because the price has been trading in the $6000s for quite some time now, so there is obviously a chance that it won’t happen at all.
There will be a breakout at some point, but it could easily be a downward breakout below $5800 if this latest breakout attempt fails to materialise.
Please note that these are just my own thought and opinions. I am not providing any trading advice or recommending any trades. Bitcoin trading is exceptionally risky and you should always be aware of these risks before entering any trades.
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