By Tobi Loba
Bitcoin (BTC), the largest cryptocurrency by market capitalization, made its way through to a 5-digit price level a couple of days ago but failed to maintain its stability.
The digital asset has since been unsuccessful in its attempts to break above $10,000 resistance level. At the time of writing, BTC is trading at $9,664.84, with a 1.48% price uptrend in the last 24 hours.
Despite this failed price uprising attempts and brutal sell-off, a Bloomberg analyst, Mike McGlone, believes that Bitcoin (BTC) is still on track to break above its all-time high ($20,000) in 2020, citing various fundamental factors to support his prediction.
Bitcoin (BTC) Could Hit $20,000 This Year
Mike McGlone, the senior analyst at Bloomberg believes that the king of coins, Bitcoin (BTC) could double its present price to break above $20,000 before 2020 ends.
McGlone analyzed the price trend of the digital currency in the past few months before drawing his conclusion.
In his explanation, he stated that the event that played out before and after the recently occurred Bitcoin halving resembles the price action in 2016. He pointed out that a repeat of 2016 price action could aid BTC to attain $20,000.
He said:
“Bitcoin is mirroring the 2016 return to its previous peak. Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend.”
McGlone rests his optimism on a number of market factors such as, 1) Bitcoin (BTC) is outperforming the stock market, which may draw more investors into the cryptocurrency market. 2) Bitcoin is gaining institutional adoption, as evidenced by the CME futures market. 3) The number of active BTC addresses is increasing. 4) The halving should have a positive effect on the supply-demand dynamic of the crypto market.