Bitcoin is very likely to see new highs this year, here's why...

I think there is a very good chance that bitcoin will see new highs this year, and possibly a lot more.

The previous highs were in late 2017, right around $20k.

Currently bitcoin is trading around $9,000 with roughly 10 months still to go in the year.

There are several key factors taking place this year that I think will likely send bitcoin to new highs within those next 10 months.

(Source: https://www.bitcoinblockhalf.com/)

We can't start any conversation about things impacting bitcoin this year, without starting with the Halving...

Bitcoin is set to have its block rewards drop from 12.5 to 6.25 on May 12th (as of right now, but that date may change as we move closer).

During the past 2 halvings (bitcoin has only ever had 2 halvings), the price performed very well in the 12-15 months following the halving.

Considering the halving is in May, we have a good chunk of that window still left in this year.

Though, I do think that the price will ultimately peak in mid to late 2021.

Secondly, we have the coronavirus...

This one was a bit unexpected but is a major tailwind never the less.

Right now we have people all over the world looking for safety, and bitcoin/crypto represents a viable option for them.

Not only that but with entire cities being put on quarantine/lock-down, people tend to get bored spending all day at home... they may have nothing better to do than trade bitcoin and crypto! :)

I recently read a news story stating that is exactly what is happening in China.

The love to gamble and being forced to stay him is forcing many of them to speculate on bitcoin and crypto while they wait the coronavirus out.

Thirdly, 2020 is an election year in the United States...

Last year we saw Washington pour cold water on the bitcoin rally in early summer.

This year, with it being an election year, we should have Washington much more focused on that as opposed to putting bitcoin and crypto in its cross hairs.

This should help provide the cover needed for bitcoin and crypto to see a sustained rally.

(Source: https://money.cnn.com/2014/04/09/technology/bitcoin-washington-lobbying/index.html)

Also, we have geopolitical tensions...

We already say bitcoin do well when there were geopolitical tensions with China late last year.

Well, we are starting to see more with Iran pop up.

And with Donald Trump in the White House, who knows what other ones will pop up as we move through the year.

These types of things should give demand to bitcoin throughout much of the year.

And finally, we have the technicals on our side...

Bitcoin is back above its 200 day moving average and that is a very good thing.

Historically, when bitcoin is above its 200 day moving average is sees gains of roughly 200% on average in the following 6 months.

We just crossed above it a couple weeks back, which means that if history repeats we are in store for a very exciting next 6 months!

In my opinion all that adds up to bitcoin likely making news highs this year.

If I had to guess, I would say that bitcoin sees new highs within a couple months of the halving, most likely a couple months post halving, but I wouldn't rule it out pre-halving either if things get crazy.

Past patterns would dictate we see new highs several months post halving though.

Stay informed my friends.

-Doc