Tone Vays, the well-known Bitcoin derivatives trader (BTC), believes that the BTC price will remain above $10,000 for the rest of 2020.
Earlier this year, Vays said he was skeptical that BTC would break the $20,000 barrier in 2021, but now believes it is possible for the major cryptomone currency to break its historical record.
If the price of Bitcoin exceeds $20,000 in the medium term, Vays said history shows that it tends to double. Based on historical price cycles, he said the $45,000-$50,000 range is a reasonable target.
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During an interview on IGTV, Vays said:
“Whenever Bitcoin’s price breaks a previous record high, especially when it takes years to break that record high, it usually tends to go up more than twice as high. So I think between a target of $45,000 and $50,000 is pretty reasonable.
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The price of Bitcoin could increase once the USD 20,000 is broken
Throughout 2020, Vays said BTC is likely to remain above USD 10,000 and approach USD 20,000 the following year. He noted this:
“At the beginning of the year, I thought that even next year it would be a struggle to break 20,000 dollars. Now I think it’s quite likely that we’ll get over it next year.
As on-chain analysts have said throughout August, the $10,000 area has become a strong support level for Bitcoin. As long as the key psychological level at $10,000 is intact, a widespread uptrend is more likely.
Vays also made a comparison between Bitcoin and Gold. He emphasized that the price of gold broke its historical high and saw a 5% increase beyond its previous high fairly quickly.
The trader explained that Bitcoin could do something similar in the medium to long term when it breaks its previous record high of $20,000. He said:
“We’re seeing what’s happening with gold right now. Its price finally broke its historical high, which it reached ten years ago, recently, and has already exceeded $100. So it was 5% faster. So let’s see how fast gold goes up since it broke the all-time high, and Bitcoin could do something similar.
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How far could Bitcoin go?
Several pricing models predict that the price of Bitcoin Revolution will reach between $30,000 and $250,000 in the long run.
According to Vays, he’d be satisfied if Bitcoin’s next high was around $45,000. Historically, Bitcoin has experienced a major breakthrough beyond its previous record, reaching a new high and then making a correction. A rapid rise to unsustainable price levels could leave the asset vulnerable to sharp declines. He added:
“Do we think we’ll get to $100,000? I’m not willing to make that statement. For me, I would be happy if the next ceiling was around USD 45,000, and that could happen quickly.
A constant theme that complements Bitcoin’s uptrend is a favorable global macro environment that also complements gold. Fears of rising inflation and economic uncertainty could keep Bitcoin’s momentum going.