Our bullish Bitcoin price forecast is underway, clearly! We’ll see much higher crypto prices, and Bitcoin prices in particular, in 2020. Not only because it is one of our forecasts published in 7 crypto predictions (no, we are not dogmatic to our forecasts, and are ok admitting that we forecasted something inaccurately) but primarily because all indicators are ‘on green’ for crypto. We are talking the charts, as well as fundamental drivers. Continue reading to understand what we mean.
First of all, fundamentally, everything is lined up for Bitcooin to move higher.
For those who did not realize it yet, the result of the Corona crash from an intermarket perspective is the ‘inflation trade’ is winning.
We explained that gold is moving higher: Gold Price Ready To ‘Blast’ Through All-Time Highs. Gold will continue to move higher.
Why? Because policy makers stimulated the economy to such an extent that they created inflation. Think of the free paycheck that the US distributed to many citizens, think of the financial interventions that companies received, think of the policies in the EU.
They are all inflationary!
No coincidence that gold is reacting in an ultra bullish way.
But it’s not just gold, it’s also Bitcoin. Because both are correlated, strongly correlated. That’s what below chart tells us.
There has only been one short period of a divergence. Other than that, directionally both move in the same direction.
Yes, Bitcoin can be considered an inflation trade in 2020. It was a trade associated with illegal things, but that’s 10 years ago. Watch out with the narrative, that’s not how markets work but that’s how our brain works.
The old narrative in Bitcoin has to be replaced by the new one, which is the inflation trade.
Next, the Bitcoin chart.
We did not include it in here, but needless to say the price action in the last 3 days was ultra bullish. And it confirms our long standing view: Bitcoin goes higher, period.
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