Market Cycle Analysis: Bitcoin Could Surge to $20,000 by the End of 2020

Source: Daily Planet

At the time of writing, Bitcoin is trading below $11,800, having faced stiff resistance at $12,000. According to recent analysis, the leading cryptocurrency is expected to rise further in the coming months. The analysis suggests that BTC is at a point in its cycle where it will see a significant rise.

Market cycle analysis by one crypto trader suggests Bitcoin will hit $20,000 in the coming months, with that target likely to be by the end of 2020.

The chart shows that in every historical market cycle, when Bitcoin was in its ongoing bull run, it would begin a parabolic rise towards the previous all-time high.

This market cycle prediction is not the only analysis suggesting that Bitcoin could reach $20,000 by the end of 2020. This strong sentiment has been echoed by many market participants.

Mike McGlone, senior commodities analyst at Bloomberg Intelligence, commented in a research note on cryptocurrencies:

“Bitcoin is showing gains back to its previous peak in 2016, which was the moment of the last supply halving, and the third significant peak. Our graphic depicts Bitcoin marking time three years after the parabolic 2017 rally… Fast forward four years, two years after the nearly 75% drop in 2018, and if Bitcoin follows the 2016 trend, it will reach a new all-time high of around $20,000 this year.”

BitMEX CEO Arthur Hayes also mentioned this price target.

In an April blog post, he said the Federal Reserve’s money printers and other macro trends would push the asset to a record high this year: “As dramatic as the first quarter asset price crash was, we have the largest monetary easing in nearly 100 years, so my price target for Bitcoin by the end of 2020 remains $20,000.”

In a recent blog post, he appears to have doubled down on that price target.

“Like many other pseudo-intellectuals and keyboard warriors, I have a massive upside target for Bitcoin, which I’ll get to in my next summary. But Q4 will be a wonder, with wild swings in financial markets as politicians contort themselves and continue to feed off the bottom.”

He further stated, “Unfortunately, this will have a lasting impact on the lives of everyone around the world. In the chaos, more people will distrust centralized authority and will seek ways to protect their lives and capital from the willful destruction of their rulers.”

The comment reflects his core belief that inflation in fiat currencies will drive scarce assets higher.