Pattern suggests bitcoin can bounce back to $20000
March 5, 2019 | Investopaper
After gaining a record high value, bitcoin has struggled in past years and investors have lost a huge amount by investing in bitcoin. Many must have given up and withdrawn from investing in bitcoin while some may have stuck to their investment. So, for those who belong to the latter group, positive news has emerged about bitcoin.
A 4-year pattern has been revealed that suggests that bitcoin can regain its top value and those who have held their digital currency can profit from it. The chart has been prepared by Canaccord Genuity Capital Markets which shows a similar trading pattern between the time frame of 2011-15 and 2015-19. So those who optimists who actually believe that bitcoin will bounce back may be actually right. It may take time but they may see the change in their fortunes.
“Looking ahead, if bitcoin were to continue following the same trend as in the years 2011-2017, the implication is that bitcoin would be bottoming approximately now and would soon begin climbing back towards its all-time high of ~$20,000, theoretically reaching that level in March 2021,” wrote Michael Graham and Scott Suh of Canaccord Genuity Capital Markets, in a research note to clients.
Other analysts suggested that the bounce back may be catalyzed by the growing use of bitcoin in the new market and the ability of the currency itself to perform the transaction at a quicker pace. Similarly, the reward for solving mathematical problems in a blockchain was 50 bitcoins that have been cut to 12.5 bitcoins per block. This has helped to solve the problems related to inflation.
Lately, Bitcoin has increased by 11 percent in its value this February closing at $3800. This has given some respite to the best-known cryptocurrency holders after facing a continuous drop in the last six months.
