Although bulls had firm control over Bitcoin (BTC) throughout the first half of the year, the second half was firmly controlled by bears, who pushed it as low as $6,400 before it incurred some notable upwards momentum that allowed it to climb towards $8,000.
In the time since its relief rally from $6,400, the crypto has been trading sideways within the mid-$7,000 region, but the price action seen in the new year may prove to be overwhelmingly in favor of bulls, as multiple bullish factors could allow it to surge up to, or even above, its previously established all-time highs.
Bitcoin’s Fundamental Strength Begins Shaping Up; Here’s What This Means for 2020
Currently, Bitcoin is trading up just over 1% at its current price of $7,450, which marks a notable climb from its recent lows of $7,000 that were set earlier this week during a sharp and fleeting sell-off that was ultimately absorbed by buyers.
It is important to note that Bitcoin is trading up significantly from its year-to-date lows of $3,400 that were set in the earlier part of the year. Its massive climb from these lows means that BTC is on track to end the year on a bullish note.
Further enhancing this bullishness is a myriad of different factors discussed by CryptoBirb in a recent tweet thread, in which the analyst notes that 2020 will be a positive year for the cryptocurrency due to a recently formed golden cross, bullish descending channel, rising open interest on futures, and more.
We argue over short-term moves but big picture is clearLet's rock 2020Who's with me? pic.twitter.com/SmbIu5CgFB
— Crypto₿irb (@crypto_birb) December 23, 2019
A couple other notable factors referenced in CryptoBirb’s thread is that volume on platforms like Bakkt is on the rise, and that BTC’s hash rate is currently trading right around its recently established all-time highs.
Accumulation Phase May Further Signal That 2020 Will Be Bullish Year for BTC
Willy Woo, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin’s on-chain investor activity points to the possibility that Bitcoin is currently in the final accumulation phase that historically precedes major parabolic bull phases.
“Are we in a $BTC bear market? No, we are in the re-accumulation phase of a bull market,” he explained while pointing to the chart seen below.
Are we in a $BTC bear market?
No, we are in the re-accumulation phase of a bull market. pic.twitter.com/OcMyxA4EIY
— Willy Woo (@woonomic) December 28, 2019
The culmination of all these factors points to the possibility that 2020 will be an incredibly bullish year for Bitcoin, and if history repeats itself, the crypto could surge back to, or even above, its previously established all-time highs.
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