Despite analysts’ Bitcoin predictions that claimed Bitcoin was ready to update highs. After rapid growth at the beginning of the year, Bitcoin has significantly lost ground and continues to fall for 5 months.

However, there are a number of factors indicating the growth of the main cryptocurrency in the near future. But no one can look into the future. There is always a chance when something can go wrong as planned. The market is unpredictable. Many of the recommendations that worked previously do not work now. The market is constantly changing, and the rules are changing with it. For example, even the forecasts of a well-known anonymous analyst who correctly predicted the courses on certain dates in 2019. For the first time, he made a mistake with the forecast. According to his analysis, in October, the cost of bitcoin was supposed to reach $ 16,000.

The main reasons for the growth of bitcoin

If a year or two ago there were disputes about whether Bitcoin should be prohibited or not. Now most countries are deciding how to regulate the cryptocurrency market. This positive trend can serve as fertile ground for the growth of the value of the first cryptocurrency in the near future. But so far not everything is so smooth.

Despite the launch of futures trading on CBOE, CME and Bakkt. And the launch of ETFs on Bitcoin is once again postponed indefinitely. It should be noted that the SEC plans to approve the Bitcoin-ETF, but currently the regulator cannot approve any applications. Due to incomplete compliance with all necessary requirements.

Another factor for Bitcoin growth

Another factor for the growth of bitcoin is the growing economic situation in the world. The period of active growth of bitcoins in the spring of 2019 coincided with the period of the trade wars of the United States and China. In this situation, bitcoin has proven to be a more reliable alternative tool for hedging assets. National currencies and company stocks were under serious threat.

Rewarding Miners

The next factor is the interest of miners. Despite the fall in prices since June 2019, the hashrate of the Bitcoin network continues to grow. This factor has a strong influence also because now Bitcoin has again overcome the breakeven point of mining, which is at about $ 8,600. Analysts and Bitcoin predictions note that this may indicate the growth of the main cryptocurrency in the near future. Cryptoexpert Naim Aslam suggests that an increasing trend for mining suggests that miners expect an increase in bitcoin prices. Do not write off the upcoming halving, which will happen next year.

Bitcoin technical indicators

The growth of bitcoin is also indicated by technical indicators. So, Shirley McCoy, an analyst at AMBCrypto, noted that the technical indicator MACD forms a pattern called “bullish crossover”, which correctly works in more than half of cases. His Bitcoin predictions turned out to be true. Recently, Bitcoin again surpassed the $ 8,000 mark, rising to $ 8.281 as of October 20, 2019.

Bitcoin halving

The bitcoin can be affected by halving – halving the reward for the mined block, the purpose of which is to curb inflation. Initially, the reward for the mined block was 50 BTC. Bitcoin halving occurred twice: in 2012 and 2016. Now the reward is 12.5 BTC for the new block, and the next halving is expected in 2020. After which the reward will be further reduced by half to 6.25 BTC. How can halving affect the cryptocurrency rate? Previously, halving did not directly lead to a rapid increase in the price, but after a while, the price of bitcoin continued to rise.

Bitcoin price after halving in 2012 (Coinmarketcap)
Bitcoin price after halving in 2012 (Coinmarketcap)

However, it is worth considering that the demand for bitcoin and cryptocurrencies. In general is now not growing so rapidly, and after the next halving, mining will be unprofitable if the price does not grow at least twice.

Bitcoin predictions. It is difficult to predict the movement, since it is necessary to take into account other factors, such as the correlation between the hashrate and the Bitcoin exchange rate, the news background, investor expectations and other fundamental signs. That can indicate both an early increase and a fall in cryptocurrency.

Bitcoin market is speculative

In the cryptocurrency market, large players rule the ball, who can easily manipulate it at their discretion. So far, the bitcoin market does not have sufficiently high liquidity and transparency in order to prevent large speculation. For this reason, the growth of bitcoin will continue, or it will fall, depending on which strategy is currently most beneficial for manipulators. Obviously, with a strong fall in the value of the asset, the likelihood of its growth in the foreseeable future increases significantly. Now the price of bitcoin has dipped almost two times relative to the high of 2019, at around $ 14,000, and now the first cryptocurrency is trading at around $ 8,000.

Therefore, you must always have at hand tools that will help you effectively manage your crypto portfolio. One of these tools is the service, a platform for optimizing and automatically rebalancing a crypto portfolio. The service optimizes the crypto portfolio and selects the appropriate ratio of crypto assets. Holderlab works with the largest crypto exchanges using the APIs: Binance, Bitfinex, Kraken, Huobi, Bittrex, KuCoin and others.

Does the cryptocurrency market depend on political situations?

The crypto market is highly dependent on the political and economic situation. Bans and litigation adversely affect the cryptocurrency rate. Therefore, it is impossible to predict the behavior of the cryptocurrency market even in the near future. On any day, news can come out, for example, about hacking a large exchange, financial frauds of some founders, some of which were involved in the situation with the Tether stablecoin, and bitcoin is likely to lose much in price in a few hours.

Are there any prerequisites for future growth?

But there are still prerequisites for growth. This is indicated by technical indicators and the continued growth of the bitcoin network hashrate. On the service you can find more accurate recommendations for compiling a crypto portfolio, which will automatically determine when and how many bitcoins should be in the portfolio.