News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • 🇨🇭 Balance of Trade (SEP) Actual: CHF2.7B Previous: CHF3.3B https://www.dailyfx.com/economic-calendar#2020-10-20
  • 🇨🇭 Balance of Trade (SEP) Actual: CHF2.7B Previous: CHF3.4B https://www.dailyfx.com/economic-calendar#2020-10-20
  • Heads Up:🇨🇭 Balance of Trade (SEP) due at 06:00 GMT (15min) Previous: CHF3.4B https://www.dailyfx.com/economic-calendar#2020-10-20
  • Market Snapshot Broad risk-off tilt seen throughout APAC trade as the haven-associated $USD and $JPY climbed higher against their major counterparts #SP500 futures, #crudeoil and Australia's #ASX 200 index all losing ground alongside the risk-sensitive $AUDUSD https://t.co/axRzXuwo3t
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/7HzovoH1fH https://t.co/4ANpmSHD2c
  • What kind of 'safe haven' falls with stocks and risk-on currencies like AUD and NZD while anti-risk JPY and USD tellingly rise? Good question, #gold prices. Good question. #XAUUSD https://t.co/YDhkJ4EkRB
  • A forex trader is strategic, disciplined and always switched on to the markets. Learn how to build an FX mindset here: https://t.co/ujEpfmO6C4 https://t.co/YbEAje1YPz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.93%, while traders in EUR/USD are at opposite extremes with 66.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/1ackXDHUXJ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.07% 🇨🇭CHF: 0.01% 🇨🇦CAD: 0.01% 🇯🇵JPY: -0.10% 🇦🇺AUD: -0.29% 🇳🇿NZD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/WcMBL3OPd6
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.39% Wall Street: 0.23% France 40: -0.23% FTSE 100: -0.41% Germany 30: -0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/du2By4Rlrd
Bitcoin Price Forecast 2020: BTC/USD Lacks Bullish Sentiment, For Now

Bitcoin Price Forecast 2020: BTC/USD Lacks Bullish Sentiment, For Now

2019-12-23 18:40:00
Peter Hanks, Analyst
Share:

Bitcoin Price Forecast 2020:

  • Despite falling roughly $6,000 from its June peak, Bitcoin was one of the best performing assets in 2019
  • Nearly devoid of bullish sentiment in the second half of the year, BTC/USD will round out 2019 with a yearly return of about 90%
  • With that in mind, it may be worth holding some of the cryptocurrency in 2020 in the event bullish sentiment returns, although the nearer-term outlook remains in question

Bitcoin Price Forecast 2020: BTC/USD Lacks Bullish Sentiment, For Now

Bitcoin was one of the best performing assets in 2019, enjoying an incredible rally in the first half of the year which saw it rocket past assets classes like equities, traditional currencies and commodities. On pace for a 90% return in 2019, Bitcoin once again displayed its uncanny ability – an ability which has drawn criticism from some – to undergo wild price swings. Consequently, Bitcoin may deserve a spot in your investment portfolio in 2020 as a sort of “x-factor” investment given it fits within your risk tolerance and broader strategy.

Bitcoin Price Chart: Daily Time Frame (January 2019 – December 2019) (Chart 1)

bitcoin price forecast for 2020 chart

To be sure, the shorter-term outlook for Bitcoin remains unencouraging. Slipping more than $6,000 – or about 170% - since its June peak, BTC/USD has fallen beneath a series of trendlines and support levels that have left its current valuation difficult to defend. Clinging to support around the $7,000-mark, Bitcoin bulls and optimists have offered a series of rescue efforts that have kept price afloat, but bearishness persists, and fundamental drivers appear few and far between.

Previously enjoying a boost from currency-crises and economic uncertainty in emerging markets, many issues in at-risk economies have receded which has seen Bitcoin’s negative correlation with emerging market currencies weaken and left the digital asset without a main fundamental driver. Further still, cryptocurrency volume has fallen broadly as the asset-class falls out of the spotlight in more developed markets. Consequently, a broader downtrend has emerged and undermined the gains established on the back of currency woes in South Africa, China, Argentina, Turkey and other emerging economies.

Bitcoin Trading Volume Shrinks

bitcoin trading volume chart

Created with TradingView

With that in mind, Bitcoin may continue to falter in 2020 especially given the weakened state of technicals at the coin’s disposal. Still, the price history of Bitcoin and the nature of the asset make it an intriguing option for portfolio allocation in the new year. While offering the potential for outsized gains of 2 or 3-fold, Bitcoin could also arguably serve as a hedge against investments in emerging markets currencies or equities if a crisis emerges.

bitcoin returns in 2019

Source: Bloomberg

Still, the unpredictability and volatility of Bitcoin make it an undoubtedly risky investment and there is potential for the current downtrend to persist indefinitely as cryptocurrencies find their role in the investment world. Therefore, any allocation should be kept to a minimum in my opinion, but enough to grant exposure to the explosiveness of the asset class. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis on shorter-term price movements in the largest cryptocurrency by market capitalization.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:How to Invest During a Recession: Investments & Strategy

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES