• Bitcoin breaks free of selling pressure, marking a daily high so far of USD 7,357
  • Nexo boss Antoni Trenchev predicts Bitcoin to hit USD 50,000 in 2020
  • Ethereum may perform even better than Bitcoin, and is tipped by many to jump 100% this year

Bitcoin price is seeing a remarkable turnaround on Friday, just before the weekend, with a sudden surge happening around Asian market trading times to bring Bitcoin to a current daily high of USD 7,357 (CoinDesk). This happened soon after price plunged to a low of USD 6,852, breaking the support line that had held for a week earlier.

The rejection of selling pressure will be seen as crucial resistance by Bitcoin buyers who do not want to see the support level breached for over 24 hours. Traders must have anticipated the bounce and will now see that instead of becoming a resistance, USD 7,200 is back at support, with relative strength index (RSI) pointing still to oversold territory.

Those watching the news for price predictions will feel happy to hear that Nexo boss Antoni Trenchev, has told Bloomberg in Berlin that Bitcoin price growth as an “incredible asset” has surprised everyone, but will continue to break new heights, with a price prediction of USD 50,000 this year. This is pretty close to the prediction of CNBC host Joe Kernen, who only six months ago said that BTC/USD would touch 55,000 close to the halving event on the Bitcoin network estimated to take place in May later this year.

The Bitcoin lending platform CEO said that the 2017 bull run of Bitcoin to almost break USD 20,000 was similar to hyperinflation in Germany after the First World War. Trenchev noted:

“It’s been an incredible asset uncorrelated to the overall market… It delivers systematic asymmetric returns and the only thing that we have seen close to anything like this has been the rise of the US dollar against the (German papiermark) in the 1920s[.]”

As Trenchev made his comments, the US, under President Trump’s regime, had just resumed bombing of Iraq, today killing a senior Iranian general in Baghdad. Are these mirrors and echoes of geopolitical upheaval in Germany a century ago? In any case, the US dollar and Bitcoin have both risen in the past 24 hours, displaying the confidence of US military might and a movement of funds to more secure assets in times of trouble.

And it appears Bitcoin isn’t the only one enjoying bullish predictions, with some crypto analysts saying that Ethereum could even perform better than Bitcoin. Others may not be as bullish, but most still say that Ether, currently the world’s largest alternative cryptocurrency by market capitalization, could pump in price over the next few months.

One other analyst, Manu Naik, is confident that, due to a current falling wedge in the daily ETH/USD chart, an upside chance of 68% pointed to a lower limit of USD 128, leading to a possible 100% rise to USD 240 as soon as mid-January.

Scott Melker, another crypto influencer, insists that Ether actually “looks better” than Bitcoin. A few days ago, he Tweeted a chart following the ETH/BTC movement, and shows how ETH has been trading in a tight range against BTC for the past six months. He believes that this is a strong case for a rebound upwards off significant support and can propel ETH to higher price points.

Not everyone agrees things will improve so quickly though, DonAlt says this range could lengthen for another year, seeing it trading between USD 130 to USD 268 all the way until 2021.

All the same, price action or not, a lot of people will be hoping to finally get some joy from the new iteration of Ethereum, as it makes a significant shift from Proof of Work to Proof of Stake. The so-called Ethereum 2.0 hopes to improve scalability and reduce the toll on miners by slowly lowering block rewards and making it a more efficient staking network.

So far, this move has happened in stages, with the earliest possible timeline seeing a complete Ethereum 2.0 in 2021 with the Serenity update. Muir Glacier is the latest hard for, following Istanbul, Constantinople and St Petersburg all taking place in 2019.

 

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