One such event is ‘decoupling.’ The Bitcoin price has begun to move in a different direction than the S&P 500, which has gone straight down over the past month. This suggests that Bitcoin could enter a prolonged accumulation phase, but has already reached a bottom. While there will most likely be less capital for investing in high-risk assets such as Bitcoin, institutional investments are still possible, especially with the possibility of traditional markets closing. This would most likely aid in its recovery. Furthermore, the third halving occurred in the end of May. Traditionally, the BTC price has gradually increased prior to halving and has accelerated its rate of increase afterward. This event takes on increased importance due to the ongoing massive fiscal stimulus by central banks throughout the globe. This should have a bullish effect on assets with a limited supply such as Bitcoin since fiat currencies are being devalued even more. It remains to be seen if Bitcoin will ever be the cryptocurrency that everyone ends up using. But, its likelihood of sticking around for the long-term is higher this year than it ever has been. In light of this development, BeInCrypto is going to make an attempt to predict the Bitcoin price at the end of the year, on December 31, 2020, 2021, and 2025.
Short-Term Prediction
Bitcoin has been increasing rapidly since the beginning of Sept. moving upwards in a parabolic line. Until now, it has reached a high of $41,785, which is the current all-time high price. This marks a more than 400% increase from the Sept lows of $9850. While the rally is definitely overextended, as is visible by the overbought levels in the RSI, there is no definite sign of weakness yet that would confirm the move is coming to an end. Nevertheless, a parabolic rate of increase is unsustainable in the long-run, and the wave count suggest a high between $42,000-$46,000 before a significant correction.