Bitcoin lost momentum, but markets believe in its 2020 outlook

By January 10, 2020Bitcoin Business
Click here to view original web page at

Cryptocurrency did not create investors a festive mood at the end of the year, but with the beginning of the new year, some of them had an opportunity to sell bitcoins at a higher price. Geopolitics and false signals as a sharp increase in USDT issue by $500 mln created a basis for growth for the bitcoin, and then for the whole crypto market. A sharp rise in the USDT emission perceived as a positive signal for growth, so bots start buying after such news. What happened once again indicates a growing share of algorithmic trading in the crypto sector.

As a result, Bitcoin jumped up to $8,400, where it faced severe resistance. Apart from mistaken news on USDT emission, the geopolitical tension around Iran and the U.S. began to decrease. It became clear that both sides are not interested in further escalation and markets started to return to normal functioning. For Bitcoin, this means a decline.

Besides, as the crypto market began to grow, the technical picture pointed to a significant overbought of the Bitcoin. The Relative Strength Index (RSI) was even higher than when the bitcoin rebounded to $10K at the end of October 2019, when China's head Xi Jinping made his famous statement related to China's course on the blockchain development. It is not surprising that now we are witnessing a rollback in prices. However, the cautious nature of the reversal suggests that the level of optimism is still quite high.

Several well-known traders, including Peter Brandt, still hold bullish views on bitcoin. One of the leaders in the analysis has tweeted several bullish scenarios for bitcoin in 2020. In the first scenario, we will first face bear pressure which will push the Bitcoin down to $5K and then see the rebound while the lower boundary is held. In the second scenario, we are already out of the descending channel, which lasts from the summer, and the long accumulation of the asset will be the main reason for its growth. Also, optimists are waiting for Starbucks and Bakkt to collaborate, and for bitcoin usage to increase in the real world.


FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.

Leave a Reply