The price of Bitcoin will slowly climb back to $20,000 by March 2021, according to investment banking and financial services firm, Canaccord Genuity.
In a research note, it says: “Now four months into 2019, we note for the third time the striking similarity in Bitcoin’s price action between 2011-2015 and 2015-2019. While this simple pattern recognition has little fundamental basis, we note that Bitcoin does operate on a four-year cycle of sorts, as the halving of its mining reward occurs approximately every four years.”
“It has started to form the spring 2019 bottom we began mentioning last year, although a close look at the chart suggests the recovery may be slightly ahead of itself. Looking ahead, if it were to continue following the same trend, the implication is a slow climb back toward its all-time high of ~$20,000, theoretically reaching that level in March 2021.”
Moment of truth
Breaking through the $6,000 barrier this week was a moment of truth for Bitcoin, according to Simon Peters, analyst at eToro.
“This had been a major support level throughout most of 2018 and holds major psychological significance for the community. I expect to see a small sell-off initially before the price breaks higher,” he comments.
If this happens, we could see prices reach levels last seen at the start of 2018, potentially hitting the $12,000-$14,000 range by the end of the year, Peters reckons. “Given that global markets are having a bit of a wobble at the minute, Bitcoin’s price growth in recent weeks means it is one of the strongest asset classes so far in 2019,” he concludes.