After six days in the green, Bitcoin (BTC) saw a sharp drop on Wednesday where it plunged from over $8,300 to $7,800 in a span of hours. This steep drop of at least 8% came after US President Donald Trump announced that he will not be pursuing further military action against Iran.
Nonetheless, looking at the longer-term picture, BitPay CCO Sonny Singh is bullish on bitcoin in 2020. Singh told Bloomberg on January 8 that he expects bitcoin (BTC) to break beyond $20,000 this year.
Bitcoin Slips Below $8K
Bitcoin plunged below $8,000 on Wednesday and is currently doddering at $7,871.17, according to data provided by CoinGecko. The cryptocurrency is trading 5.3 percent lower from yesterday’s price. A further drop to mid $7,000s is not out of question for the top crypto – owing to the sharp rejection that it saw at the $8,400s level.
Popular trader-cum-analyst Josh Rager observed that in the past couple of months, $8,400 has acted as a major support and resistance level for bitcoin. According to Rager, the fact that bitcoin is yet to bounce back to that level indicates that BTC is “not of the bear woods yet.” He goes on to advise bitcoin traders to “take it level by level, day by day.”
Fellow trader by the online alias The Moon cited that bitcoin is currently testing the 20-week moving average. The trader noted that this indicator has “historically marked VERY important turning-points for bitcoin, both bullish and bearish.” He then pointed out that BTC will soar to $9,450 if the bulls breach this resistance. Conversely, if they fail to break it, BTC could plunge to $6,000.
While the short-term picture looks grim, BitPay CCO believes 2020 will end with a resounding bang.
Bitcoin (BTC) To Surpass $20,000 In 2020
In an interview with Bloomberg, the Chief Commercial Officer (CCO) of cryptocurrency payments processor BitPay, Sonny Singh, shared his thoughts about the cryptocurrency market. Singh and the host Taylor Riggs spoke about the recent surge that saw bitcoin rally past $8,400 to which they seemingly agreed was further catalyzed by the tensions between Iran and United States.
Riggs then asked the CCO which fundamental factors he believes will supercharge bitcoin this year. Singh explained that despite many people anticipating the May halving to push bitcoin price higher, he believes it has already been priced in. For him, “unforeseen things” in the crypto-verse will likely push bitcoin past $20,000. He cites the example of Facebook’s Libra being the catalyst for the June 2019 rally, which no one could have predicted.
This year, the CCO opined that if a country like China, Russia or India legalizes bitcoin, if another big company like Facebook enters the crypto space, or if the US government does something that causes uncertainty in the markets, bitcoin will push higher much faster. In short, if any of these things happen, bitcoin will clock $20,000 by the end of 2020.
Singh also noted two fundamental drivers that are bullish for the bitcoin price in 2020. First, he quipped that Fidelity launched its cryptocurrency custody and trading service for institutional investors, which will likely attract more money into the bitcoin market. Secondly, Jack Dorsey’s Square hired several engineers who will make bitcoin more usable on a daily basis, boosting bitcoin adoption in 2020.
In short, Singh believes strong fundamental factors combined with unanticipated events in the crypto space will be the basis of bitcoin’s next rally past $20,000 this year.