Here’s How Bitcoin Bull Run Will Start at $20,000

  • CNBC call for a 17% upside in bitcoin price
  • A wave of investors driven by FOMO will enter when we break into a new high
  • Bitcoin’s investment flow presently growing an order of magnitude (10x) every 4 years – on-chain analyst

Bitcoin price is still hovering around $10,250, not continuing the momentum but not sliding down either.

However, with CNBC making a call for a bitcoin boom, it might be time to get ready for a drop as CNBC’s call for bitcoin works as a reverse indicator.

According to the mainstream media outlet, despite bitcoin’s pull back above $10,000, the rally is far from over. MKM Partners chief market technician JC O’Hara told CNBC on Wednesday,

“When we look at cryptos as a whole, they tend to trade in two distinct phases. The first being dormant consolidation, which is followed by phase two, which is a high-momentum phase.”

“When you look at bitcoin we’re starting to see signs that the dormant consolidation from the second half of last year is slowly starting to change in terms of positive bullish momentum here.”

CNBC: A 17% Upside Coming

On a year-to-date basis, the world’s leading cryptocurrency has surged over 38% after finding a bottom in December. Ever since then, bitcoin has been on a steady rise. O’Hara said,

“We broke out of the downward sloping trend channel. We’re breaking above the $10,000 psychological level, and we’re of the opinion that positive momentum will continue to follow positive momentum. So that’s why we think in the short term we could see $12,000 on bitcoin.”

Currently, bitcoin is trading at $10,250 and a move to $12,000 would imply an upside of 17% from the current levels. Back in July, last year bitcoin briefly topped at $13,900 but we have yet to break into an all-time high.

Open field above $20,000

Bitcoin, the best performing asset of the decade with an upside of nine million percent would pull in another wave of investors driven by FOMO when we break into a new high, according to Jake Chervinsky, Counsel at Compound Finance.

Bitcoin remains a speculative asset for the newbies, he said while sharing his first foray into bitcoin which was after the flagship cryptocurrency made an ATH during the bull market of 2017 at $3k despite having heard of it in 2015. And this is why the bull market will start at $20,000. Vijay Boyapati said,

“Once the prior all time high is breached, there is no longer an overhang of supply. The price is free to run wild in an “open field”. This is when Bitcoin’s price appreciation begins to accelerate apace.”

Bitcoin making new all-time highs, Boyapati explained last June, will trigger a “feeding frenzy,” that will see media attention returning and new entrants attracted by the “allure of quick profits” which in turn even drive prices higher even faster. And that’s when the price will “eventually reach a crescendo top.”

Still too early to be an alternative to traditional stocks?

Mark Tepper, president of Strategic Wealth Partners, is also dipping a toe into bitcoin as he shared with CNBC,

“Overall, we’re seeing investors just continue to diversify away from traditional stocks and bonds towards alternatives. Bitcoin could fit into that alternative sleeve, but I still think it’s a little too early.”

Tepper holds bitcoin but hasn’t become a believer yet because according to him, it is “not an investment just yet still a speculative play.

However, on-chain analyst Willy Woo noted, in 2019 Visa processed $8.8T through their network while Bitcoin processed $727b meaning Visa accounts for 10% world GDP (payments) and Bitcoin 1%. Analyst Woo said,

“Bitcoin’s investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years.”

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Author: AnTy

Big Shift in Workforce and Inheritance Boom Will Make Bitcoin a Multi-Trillion Dollar Asset Class

  • “The more familiar people are, the harder the FOMO will kick in” – Misir Mahmudov
  • Even 1% of the wealth transfer goes into Bitcoin, it will be a multi-trillion-dollar asset class

Since falling from $9,200 on the weekend, Bitcoin price has now got stuck around $8,600. The world’s leading cryptocurrency is up over 18% YTD but down 0.17% in the past 24 hours.

Trading at $8,636 as per Coincodex, it is currently managing the daily trading volume of $473 million as per Messari, down from $1 billion on the weekend.

However, the Bitcoin forward curve paints a bullish picture. The forward curve is a graph that defines the price at which a contract for future delivery can be made today.

Trader Avi Felman shared a Twitter thread where he explains that generally the futures curve slope positively, meaning as expiries go further out prices get higher which is called Contango and the opposite is Backwardation where prices get lower.

Historically, Bitcoin futures trade at a premium to spot prices i.e. Contango. It allows one to “short the future, and go long spot, and collect the spread.” There are desks in the crypto industry dedicated to this trade alone.

The more awareness, the harder the FOMO kicks in

Currently, Bitcoin is down 57% from its all-time high of $20,000 in 2017 while its awareness in the US grew from 77% in fall 2017 to 89% in the Spring of 2019 despite 2018 being the bear market, notes analyst Misir Mahmudov.

“The more familiar people are, the harder the FOMO will kick in. Wait until they start hearing about BTC reaching a new all-time high this bull run,” Mahmudov said.

What’s even more interesting and bullish for BTC is the millennials and $68 trillion wealth transfer.

A Big Shift in the WorkForce & Wealth

Cameron Winklevoss, Gemini co-founder points out,

Though it won’t be 70%, but much closer to 40% and over 50% in Africa, a shift would be happening.

Studies have shown that these Millennials will be holding five times the wealth they hold today. The group is anticipated to inherit more than $68 trillion from their Baby Boomer parents by 2030, marking the greatest wealth transfers in modern times.

Many of the Baby Boomers have been the beneficiaries of a great economy that offered well-paying safe jobs, the meteoric rise in the stock market and substantial gains in real estate. On the other hand, post-Boomer generation has been wrestling with college debt, costly real estate, procuring a well-paying job, and the high cost of insurance.

But this unprecedented hand-off of wealth will change the fortunes of many millennials that are expected to have some ripple effects on the economy.

Bullish for Bitcoin

According to crypto industry experts, it will be bullish for Bitcoin. As Ryan Selkis of Messari points out, “If 1% of that goes into cryptocurrencies, crypto will be a multi-trillion-dollar asset class,” putting a conservative case for $50k+ bitcoin.

Millennials are already buying Bitcoin, as evident from the survey of adults familiar with cryptocurrency, 20% of millennials purchase Bitcoin in the last year.

Also, GBTC is already among the top 5 holdings of Charles Schwab for Millennials ahead of Netflix and Microsoft.

So, as millennials take up the largest percentage of the workforce and a huge amount of wealth gets transferred, Bitcoin will be reaching the moon.

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Author: AnTy

Bitcoin’s Price and Crypto Market Heading Straight for “Full Blown” Level 10 FOMO: Fundstrat

Bitcoin-Market-Heading-Straight-for-Full-Blown-Level-10-FOMO-Fundstrat
  • Bitcoin FOMO past “baby” and medium” levels and heading for the last level at $10,000
  • “A price level only seen 3% of all days”

The last bull market that has Bitcoin going to $20,000 has been driven by FOMO “Fear of Missing Out” when Bitcoin started surging from less than $1000 at the beginning of 2017 to ending the year well above $19,000.

However, since then throughout the brutal winter of 2018, crypto market awareness and adoption grew while institutional investors also came rushing in. But FOMO still drives the BTC price to a certain extent.

According to Fundstrat, we are heading for level 10 that is full blown FOMO. At $6,950, we triggered the first level of FOMO termed “baby.” The “medium” that is at level 5 was hit when BTC price went approximately to $8,900 while in 2017 bull run this level was hit at $3,200.

While during the bull cycle of 2013-2017, the “full blown” FOMO was hit at $4,500, this time once we hit $10,000, we will reach the last level of FOMO that is expected to take us to the rally to new all-time highs (ATH).

Bitcoin bull and Fundstrat founder, Tom Lee explains,

“Actually the point of the chart is to say “real FOMO” probably starts when bitcoin exceeds $10,000 as that is a price level only seen 3% of all days.”

The $10,000 in the current Bitcoin market is mathematically equivalent to BTC exceeding $4,500 in 2017 that Lee says,

“was a level that indeed triggered FOMO.”

Recently, Lee had confirmed that crypto winter is over and shared 13 reasons to justify that. The points that make up these reasons include on chain transactions per day turning positive, Bitcoin Misery index crossing above 67 for the first time since August 2017, BTC price closing above 200 days first time since March 2018 and Bitcoin being bottomed out in December 2018 at $3,150.

Additionally, OTC volumes are surging, BTC printing a golden cross, and no effect of bad or negative news on the price of BItcoin among others like on chain activity and Grayscale Bitcoin Investment Trust premium are surging yet again, signaling we are out of the woods.

The strong Bitcoin market and the network indicate that we have entered a bull market. Currently, BTC/USD is trading at $8,750 with 24-hours gains of 0.41 percent.

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Author: AnTy