The first full week of the new decade is upon us and the Cryptosphere is raring to go! We’re back with our weekly crypto market outlook — a quick look back to what happened last week and then a peek into the future and what might be coming up. Ready?
Market Highlight — Will 2020 Be a Boom Year for Bitcoin?
It’s easy to be negative about the world’s most popular currency at the moment. But there’s a lot for BTC enthusiasts to be happy about these days. While its price was on a downer for most of the second half of 2019, the grandfather of crypto still roughly doubled in value over the course of 2019. In fact, there were only two major cryptocurrencies that outperformed Bitcoin in 2019.
Something else that is keeping BTC HODLers on the edge of their seats is the fact that a large rise in Bitcoin price may be around the corner when the upcoming halving event takes place. A halving event in Bitcoin is when the amount of Bitcoin generated by the network roughly every ten minutes is cut in half, which basically makes it more difficult to mine bitcoin. That makes it more scarce, which could drive up the price. This event takes place roughly every four years. When it happened back in 2016, Bitcoin rallied 4,000%.
Proponents of this theory state that Bitcoin is no longer aiming to be the crypto that everyone pays for things with. According to them, the ability to buy a coffee with BTC is no longer the dream. Instead, they believe that Bitcoin is targeting the gold market, positioning itself as a finite commodity, a store of value that rises as the resource becomes scarcer.
This remains to be seen, of course. But one thing that is certain is that people are starting to sit up and take notice and, crucially, these people are not necessarily ‘crypto people’. Members of the US Congress can also see a world in which this technology could have a major impact on society. Congressman Patrick McHenry has said that Bitcoin has enormous long-term value, and Congressman Brad Sherman has repeatedly aired his concerns that BTC may have a potential impact on the US dollar as the major reserve currency in the world.
2020 could well be a year of twists and turns for BTC, stay tuned!
Crypto Market Cap Watch
At the beginning of last week (30.12), the total crypto market capitalisation stood at $197.21 billion. The market closed the first week of 2020 with a total market capitalisation of $199.95 billion, signifying a slight increase of $2.74 billion (1.39%) over the week.
Hot Crypto Instruments
Some of the most active pairs from last week were BTC/USD, BCH/USD and ETH/USD. Here’s a quick look at these instruments and what affected them last week and what could be coming up soon.
Last week, Bitcoin extended its downside correction below the $7,200 support. At one point, BTC price even broke through the $7,000 support.
A low formed near $6,859, from which the price has recently started creeping upward. Surpassing the $7,000 and $7,200 resistance levels. At the time of writing, BTC is sitting just above the $7,400 mark.
Immediate resistance can be found at $7,530. If this is broken, Bitcoin may test the next resistance at $7,690, with the bulls likely aiming at $8,000. Should things go south, however, BTC is supported at $7,300 and $7,260.
In a positive sign, a dip to $192.52 was bought up by investors quite aggressively, indicating strong demand. At the time of writing, BCH price sits at $224.
If the bulls can push the price above $227, the next target is $241.85. On the downside, Bitcoin Cash finds its closest major support around $203.
Ethereum extended its decline to test the $125 support, last week. A strong support base appeared near $125, resulting in a steady rise toward the $128 resistance. At the time of writing, the pair is now trading nicely above the $132 and $135 resistance levels.
An immediate resistance is at the $140 level. However, the current momentum seems to be very positive, and ETH will be looking to test the $142 and $145 resistance levels. Get through this challenge and the price could push toward the $150 and $155 mark.
Crypto News — In Case You Missed It
- Burger King Venezuela Accepts Bitcoin Payments. Burger King Venezuela now accepts Bitcoin as a payment method. Confirmed in a tweet on 30 December, a single Burger King branch in the Sambil area of Caracas now accepts Bitcoin, along with altcoins Ether, Litecoin, and stable coin Tether. All of which are tradeable right now on the DSX exchange! Read more.
- North America Saw the Most Crypto and Blockchain Investment in 2019. In a recent overview of industry investment activity in 2019, The Block has found that a staggering majority of investment occurred in Asia, North America and Europe. However, it was North America that came out on top, making deals to the tune of some $2 billion. Read more.
Crypto — Did you know...
Only 0.5% of the world’s population currently uses blockchain technology. Ever since Bitcoin was created back in 2009, the number of blockchain wallets has been steadily on the rise. By the end of September 2018, Blockchain wallet users amounted to a little over 28 million. Several leading crypto analysts have predicted that these numbers will continue to rise exponentially as blockchain technology converts more promoters.
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We hope to see you soon!
The DSX team