Bitcoin can reach $50,000 in 2018 and $500,000 by 2024
A pair of Bitcoin permabulls (who are always optimistic about financial markets) believe Bitcoin will hit new heights in 2018 and beyond.
Human psychology and Bitcoin prices
According to Anthony Pompliano, Bitcoin will reach $ 50,000 by the end of 2018.
In a recent tweet, Pomp stated that the rest of the year would be interesting from a price point of view.
I’ve stuck to my $50,000 Bitcoin price target for end of year 2018.
Still have high confidence on the $50,000 number. The timeframe is the big unknown.
The next 5 months will be fun to watch.
— Pomp 🌪 (@APompliano) July 25, 2018
It was based on three factors: human psychology, ETF and institutional investors to predict Bitcoin prices.
In relation to human psychology, Pompliano has identified the resonance and excitement seen in the market when any positive price movements occur – as we saw this week. He also said that people tend to prefer round numbers, which in turn leads to a positive push between the value of thousands of dollars.
With the ETF, Pompliano expressed doubt about the approval in 2018. However, the ETF could be a catalyst for positive sentiment in the market. Therefore, the owners are less likely to sell in the hope of a significant price increase. (Yesterday, the SEC declined the Winklevoss ETF application.)
For institutional investors, Pompliano reported that they are beginning to dip their toes into the water. Earlier in the month, Barry Silbert of the Digital Currency Group (DCG) revealed that the CEOs of some organizations have traded BTC for some time. However, the lack of oversight tools and regulations have kept large organizations from fearing the insecurity of their assets.
DMI support is expected to increase
DMI works by displaying the degree of divergence between positive and negative DMI as a sign of the price trend of an asset, expressed as an average directional indicator (ADX).
At present, ADX gives BTC nearly 25 – this is a positive signal for the price speculator.
A lower ADX indicates an imminent intersection of positive and negative DMI, which usually leads to a price drop. The final cut of both DMIs occurred in May and by the end of June, leading electronic money fell by more than 30%.
The trend continues to increase exponentially every year
For Morgan Creek CEO Mark Yusko, Bitcoin will continue to grow strongly, even after six years.
In a April 2012 tweet, Yusko made a forecast that Bitcoin prices would rise to $ 500,000 by the end of 2024.
— Mark W. Yusko (@MarkYusko) April 21, 2018
With Yusko, the parabolic nature of the Bitcoin price history means that its price keeps rising every year.
Bitcoin’s logarithmic price growth is well established, and Yusko took this as a reference to protect his $ 500,000 forecast.
Director Morgan Creek said the company has also developed a model to estimate the actual value of Bitcoin. According to Yusko, this value is based on the network’s hash strength, transaction volume and number of participants.