2020-1-21 20:50 |
The head of a global crypto-financial service provider recently shared his 2020 outlook for Bitcoin.
The network is expandingIn a recent interview with CNN Swizterland, Arthur Vayloyan, the CEO of Bitcoin Suisse, a swiss-regulated crypto-financial intermediary, affirmed that Bitcoin has a bright future and 2020 could set the stage for the next bull run. He believes that the efforts put up by the developers who continued working towards improving the network in the last few months could soon pay off.
Vayloyan said:
“This year I’m actually very positive because we have seen so much development and research going on in the last year. People sometimes think when they don’t see stellar price increases etc., that nothing happens. But so many things happen, and we’re going to see them also this year emerging. And with that, interest and network expansion will just continue and probably that has an impact on positive price evolution.”
The former board member at Credit Suisse added that the upcoming halving event could also influence the price of the “mother of all cryptos.” This is an essential function of the Bitcoin protocol in which the block rewards provided to miners get cut in half, consequently, decreasing its rate of issuance. According to Vayloyan, the general rule around the block rewards reduction event is that the price of BTC “will go up.” He stated:
“When you look back and take history a little bit as a prediction or at least an idea of what could happen, it so happens that price movements are actually quite positive in those years or in the year that followed.”
Vayloya concluded that cryptocurrencies are “here to stay” since the network is expanding, the number of market participants is growing, and more institutions are joining the market. His remarks seem to align with several technical indicators that estimate that the flagship cryptocurrency is bound for a parabolic advance.
A parabolic advance could be underwayIn early Dec. 2019, Peter Brandt, a 45-years trading veteran, indicated that if Bitcoin was able to break in an upward direction out of the descending parallel channel where it was contained a new parabolic phase will begin. Such a bullish impulse would likely take it to “attack” the all-time high of 2017 and “slice” decisively through it, according to the analyst.
Brandt affirmed:
“I believe in the long term narrative of Bitcoin. Bitcoin is indeed going to $100,000, if not substantially more. Based not only on what I understand to be the fundamentals, but also what I see to be the overall classical chart context of the market.”
Now, the pioneer cryptocurrency appears to have broken out of the channel, which could indicate that it is preparing for a new bull run as Brandt mentioned.
BTC/USD by TradingViewDespite the bullish outlook, the 30-week moving average could act as a significant price barrier rejecting BTC from a further advance. If this happens, then a retracement to the 50 or 7-week moving average could be expected before a retest of the resistance level. These levels of support sit at $8,000 and $7,860, respectively.
Moving forwardVayloyan maintains that over the years institutions have been evaluating closely the importance of blockchain technology. This could be the main reason why they are now entering the market. He believes that sideliners who remain skeptical about investing in Bitcoin should look at it since it can provide significant opportunities. Now, it remains to be seen whether the demand for the flagship cryptocurrency continues to increase throughout 2020 to allow it to make higher highs.
The post The head of a major financial institution describes why Bitcoin “will go up” in 2020 appeared first on CryptoSlate.
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