According to well-known trader Tone Vays, the price of Bitcoin (BTC) will remain above $10,000 for the rest of 2020.
At the beginning of the year, Vays had expressed skepticism about BTC’s ability to exceed the $20,000 wall by 2021. However, he now believes that it is indeed possible for the cryptocurrency to reach and exceed its all-time high.
If Bitcoin will reach $20,000 in the medium term, according to Vays the price could quickly double. Analyzing the historical data, in his opinion, reaching a range between $45,000 and $50,000 seems entirely reasonable.
Historical cycle of the Bitcoin price
In particular, during an interview with IGTV, Vays said:
„Every time Bitcoin exceeds a previous high, especially when it takes years to break that barrier, its price tends to more than double. So I think a value between $45,000 and $50,000 is a reasonable target“.
Bitcoin could accelerate above $20,000
Vays believes that Bitcoin will remain above $10,000 for the whole of 2020, starting its path towards $20,000 from the following year:
„At the beginning of this year, I thought that even in 2021 it would be difficult to exceed $20,000. But now I think the $20,000 is quite likely to be exceeded next year“.
The $10,000 has become an important support for Bitcoin: as long as this psychological level remains intact, the chances of an extended uptrend remain high.
Vays also compared Bitcoin and gold, pointing out that the precious metal has recently surpassed its historical high and the price has quickly increased by a further 5%.
In his opinion, Bitcoin may experience a similar movement in the medium to long term once it crosses the $20,000 wall:
„We know what is happening with gold right now. It has finally surpassed its historical high of ten years ago and its price has already increased by another $100. In other words, it has grown by 5% very quickly.
See how fast gold is rising after exceeding its all-time high, and know that Bitcoin will do something similar“.
How far will Bitcoin go?
Vays warned traders, however: historically Bitcoin gets significant breakouts above previous historical highs, reaches new peaks, and then undergoes a big correction.
Therefore, a rapid price increase could be followed by an equally sudden collapse:
„Do we think it could reach $100,000? I am not prepared to confirm this prediction. I would be happy if the next high was around $45,000, and this level can be reached very quickly.
This week ChartsBTC analyst said that if Bitcoin Formula will follow the same pattern as previous halving cycles, the price of a single BTC could even reach $1.6 million:
„The multiples of previous cycles applied to the current one reach highs between $250,000 and $1.6 million over the next 18 months. […] While this may sound fantastic, it is only speculation. Previous highs and lows will not determine the future“.