"Bitcoin could soar above $20,000." Experts assess BTC outlook

"Bitcoin could soar above $20,000." Experts assess BTC outlook

Over the past month, the cryptocurrency has risen by 23%. Soon its price may fall, as traders will start fixing profits. What will be a good time to buy a coin?

The rate of bitcoin has increased by 83% since the beginning of 2020, to the current level of $13.25 thousand. Its market share reached 62.2%, although in September the figure fell to 56.6%. One of the latest drivers of BTC's price increase was PayPal's announcement that its customers would be able to buy, sell, store digital assets and pay them in 26 million stores.

In the near future, a correction of the growth of the price of bitcoin is possible, as traders will start fixing profits. Artem Deev, head of the analytical department of AMarkets, warned about this. Nevertheless, he is sure that for a long period - from three months or more - the rise in the price of cryptocurrency is "quite likely". Several factors speak in favor of this.

General economic instability caused by the coronavirus pandemic and the recession. Because of this, investors transfer capital into protective assets. It is mainly gold, but bitcoin is strengthening in this capacity throughout 2020.

The cryptocurrency market is becoming an increasingly important factor for the entire global financial system. This cannot be ignored by financial regulators, which in particular encourages them to create their own digital currencies.

The pandemic is becoming more widespread and countries are imposing new restrictions. This could cause a new fall in national economies and deepen the global crisis.

"Against this background, bitcoin may well rise to above $20,000 before spring or summer next year. We can say that cryptocurrency becomes an asset that will go constantly in growth. But short-term corrections are inevitable," Deev said.

The head of the Six Nines data center Sergey Troshin also positively assesses the prospects of bitcoin. By the end of the year, its rate may rise to $14 thousand.

Troshin also warned about a possible correction of the price of bitcoin in the near future. Now before the course there is a psychological threshold of $14 thousand. However, the fall is unlikely to be deep, a collapse below $10,000 is unlikely, the expert believes.

Anton Kravchenko, CEO of Xena Financial Systems, advised short-term investors to refrain from buying bitcoin at the current price. After strong growth in October, a correction is possible, in addition to this the rate is much higher than the support level of $8,000, expressed by the cost of mining.

In the event of a sharp correction, Kravchenko offered to think about buying bitcoin at a price of $11,500-$12,000. From his point of view, this could be a good time to invest in BTC for 1-2 years with a goal of $17,000.

On October 26, analysts of the American investment bank JPMorgan warnedthat now is not the right time to buy bitcoin. The coin is overbought and may soon start to become cheaper as investors start locking in profits. However, in the long term, the cryptocurrency can rise in price by 100-200%, experts believe.


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