TOP 3 reasons WHY Bitcoin price WILL SURGE to $20,000
Hello, everyone!
Here is the latest analysis of the Bitcoin trend, brought to you by **Monfex** \- a revolutionary cryptocurrency trading platform.
Beginning from February 2019 and to this date, Bitcoin price has been growing at **an exponential rate**.
The year-to-date performance comprises a 235% return, which is equivalent to the compound growth rate at 27% per month.
If we annualize this performance, we get an astonishing 1720% annual return.
**The question is:** *What’s driving this exponential growth? Can it be sustained over the long-term? And, why is it so volatile?*
Nobody knows for sure what the true **fair value** of Bitcoin is. The volatility remains high, which makes it difficult to make accurate forecasts.
There is no consensus on the market as to what the fair value of Bitcoin should be, which results in high volatility of the Bitcoin price. Market participants are trying to discover its true value and there are lots of differing opinions on the market, which leads to Bitcoin is highly volatile and highly sensitive to even insignificant market catalysts.
So, while the market is trying to uncover the Bitcoin’s true price (which, hypothetically may be enormously high if Bitcoin becomes a truly global reserve currency), **we as investors and traders are focused on making profits.**
And, while the trend remains upwards, the base-case recommendation for Bitcoin investors **remains ‘long’.**
**It seems like the euphoria of buyers has overtaken the market, which can significantly overextend the upwards trend and cause the price to grow further upwards to $15,000 and higher, without any corrective waves downwards over the near-term.**
**As far as technical analysis is concerned**, technical indicators signal a high probability of a short-term correction downwards over the next month.
The market price has deviated substantially from its central tendency measures, **such as a 30-day moving average**. The primary oscillators, **such as RSI and Stochastic**, have approached an oversold range on a daily timeframe, which also signals a high probability of a correction.
However, the current uptrend has **gained strong momentum** and it might be difficult for the sellers to reverse the market downwards. Most probably, we are going to see a flat (or sideways) trend over the next couple of weeks, and then the price will continue its strong rally upwards.
Therefore, we do not recommend to open short positions at this point.
For those, who already have long positions, **the best strategy would be a ‘buy-and-hold’ one.**
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*Disclaimer*
*This report is for information purposes only and should not be considered a solicitation to buy or sell any cryptocurrency or cryptocurrency product. Monfex accepts no responsibility for any consequences resulting from the use of this material. Any person acting on this trade idea does so entirely at their own risk.*