- Bitcoin is hovering above $8,000 ans the short-lived upside momentum faded away.
- BayernLB predicts Bitcoin’s growth towards $90,000 due to the halving event.
Bitcoin retreated below SMA200 (Simple Moving Average) on a daily timeframe, which makes the coin vulnerable to further losses towards $8,000. As long as this barrier stays unbroken, Bitcoin bulls have a chance to angineer a new recovery attempt with the first aim at $8,500. This resistance stopped BTC/USD on Tuesday and may serve as a formidable hurdle during the next bull’s run.
While the short-term picture remains uncertain, the long-term forecasts are mostly optimistic as the upcoming halving event is traditionally regarded as a strong bullish catalyst for the price.
Thus, according to One of the largest banks in Germany, Bayerische Landesbank (BayernLB), BTC/USD may hit $90,000. The analysts used a stock-to-flow approach Seyfedin Ammus models and s theory of a popular cryptocurrency analyst Plan B to forecast Bitcoin price in 2020 to predict Bitcoin’s price in 2020.
BayernLB considers the model quite convincing in terms of econometrics and heuristics. The bank is convinced that bitcoin is very similar to gold in some aspects, which means that asset will demonstrate a similar ratio of reserves and growth after the halving scheduled in 2020.
“One of our key insights: Whereas gold has had to earn its high stock-to-flow ratio “the hard way” over the course of millennia, Bitcoin’s purely digital character enables “supply engineering,” which causes the stock-to-flow ratio to rise at a breakneck pace,” the researchers wrote.
Bitcoin’s technical picture
We will need to see a sustainable move above SMA200 daily at $8,460 for the upside to gain traction with the next focus on $9,000 and $9,300 ( the middle line of a daily Bollinger Band). On the downside, the initial support is created by psychological $8,000 and followed by the recent low at $7,700.
BTC/USD, one-day chart
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