Unless something significant happens during the year, most analysts have predicted a bright future for Bitcoin’s price. In an interview, the famous crypto-investor, Michael Novogratz told CNBC bitcoin could reach $US40,000 by the end of 2018.
Although he warned during the interview that there is a long way to go and price corrections are probably going to happen throughout the year. But he reassured investors that should not be scarred by the volatile price movement because he thinks Bitcoin could in fact easily reach a price level around the $40,000 by the end of 2018.
All of this can be due to the increasing popularity of Bitcoin over the past few months. That is what most Bitcoin investors were looking forward to all of these years: the crossing of Bitcoin to the mainstream.
As some media have pointed out, the “Bitcoin” term google search has a 91% correlation with the price movements. That means that the price of Bitcoin could very well keep increasing for the next months to come as long its popularity increases.
Over the last period, all business media have dedicated continuously whole segments and interviews to Bitcoin. This number only increases by the day. Also, people that are not usually concerned with that type of news have recently started paying attention to Bitcoin as an investment option.
This has also led to many experienced analysts and economists in believing that Bitcoin is a bubble that will inevitably burst.
As seen at the graph below, at the current rate and by considering the current patterns, Bitcoin seems to be heading towards the $14,000 mark by the end of the year before it most likely retracts back to a level around the current $11,000.
For our analysis, we used patterns that have been proven to repeat over Bitcoin’s life, as well as proportional and logarithmic regression which so far has shown to be an accurate predictive tool for Bitcoin’s price. Happy trading.