Bitcoin prices may go a long way from 2019 to about $ 14,000, but this year saw the price increase of the crypto currency. The leading digital asset trading of the year was below $ 3,800, the current price is well below $ 7,300.
Although the annual price data is clearly limited, Bitcoin will win another two years if the previous years are something to end. Three years in a row, followed by a year of decline is emerging.
Does Bitcoin Price Continue to Developing Annual Formation?
Despite the acceptable sample size (Bitcoin has only existed for only a decade), the price of the leading crypto currency seems to increase for two more years compared to market capitalization. The price of Bitcoin, seen as an annual candlestick chart, seems to repeat a model that lasted for three years, followed by one year of loss. Given that Bitcoin is such a young entity, there are only two of this four-year cycle to observe so far. It is said, however, that the first candle of the third month appears to remain a little over four weeks a year. If the price exceeds $ 3,000, the mold will remain intact.
Bitcoin annual candles + pic.twitter.com/zowscmgqk0
– Bitcoin Charts (@ChartsBtc) December 2, 2019
Three of them have an interesting, potentially emerging trend, one down, another along with the overall pattern up. The last candle of back to back price increases is typically much larger than before. If the pattern holds right, 2021 seems to see explosive growth for the digital entity.
Large candlesticks every four years are partly the result of the half-activity programmed according to Bitcoin's code. Every four years, the new coin supply to coins to add a transaction block to the block chain is halved. This essentially increases Bitcoin's stock-to-flow ratio (a measure of scarcity), and any increase in demand has a greater impact on prices than a similar increase can be made before it halves.
The next half is expected to take place on May 2020. This will see that the number of new Bitcoins added to the total roaming supply every ten minutes has dropped to 6,125.
Some traders and market analysts believe that the next half will result in another parabolic increase in Bitcoin prices, as seen in 2017 and 2013. It rises to about $ 55,000 per bitcoin. The analyst makes no predictions about when this will happen. However, given for stock flow theory Half of Bitcoin's value centers every four years, if PlanB's prediction is realized, we will see some $ 55,000 Bitcoin at some point within four years of May 2020.
the #Bitco halve .. 5 months left 🚀
For Miners: 1 btc production cost will double
For investors: stock-flow (demanding scarcity, inability to inflate stocks) will double pic.twitter.com/jwnbjyil4 to
– PlanB (@ 100trillionUSD) December 1, 2019
Related Reading: Bitcoin Falls 20% Below Flow Forecast Forecast
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