Cryptocurrency Market Outlook November 2020

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Contents

What to Expect in the Cryptocurrency Market Forecast by 2020?

Hey there, welcome to the cryptocurrency forecast for the year 2020. Let’s dive in to know further.

The crypto industry is facing a lot of Ups and downs recently. The year 2020 cannot be fully termed as bearish or bullish as the cryptocurrency market experienced both these trends. However, November sees most of the currencies in the red region.

In this article, I would like to predict how the cryptocurrencies will fair in the year 2020. Below analysis and prediction of 2020 are based on the current cryptocurrency market trend.

Factors Affecting the Cryptocurrencies in 2020

Let’s see the factors that will affect the crypto market in 2020 ��

China’s Blockchain Adoption

As we all know, China is all set to adopt Blockchain into its day-to-day activities. The Chinese Government is diligently working towards this adoption. The news has already created quite a stir in the industry and the prices of most of the cryptos including Bitcoin have surged. This Bitcoin and crypto price trend would likely continue in the coming year 2020.

Halving and Hard forks

2020 year-end and 2020 have many halving and hard forks events lined up. Bitcoin halving in May 2020, Bitcoin Cash Halving by May end, Ethereum hard fork in June 2020, Bitcoin hard fork in Jan 2020, Monero Hard Fork are some from the wide lists of such events. Each event will affect the crypto industry and prices will swing.

Updated Crypto Regulations

As every country is either launching digital currency or adopting blockchain, new crypto regulations are bound to come into the market. Either the rules will be more strict towards crypto trading or will push the traders to alternate options. All-in-all, the crypto market will be affected in 2020 by these regulations.

Introduction of New Coins/ Tokens

Every alternate day, there is a new coin being either launched or announced. Facebook’s Libra is the most sought out coin of 2020. With the anticipation of these coins, it is hard to predict on which side the crypto industry will lean.

The CoronaVirus Pandemic

Coronavirus, also renamed as COVID-19 (World Health Organisation), is the most novel virus spread in mainland China. The deadly virus already recorded around 1000 fatalities. It has also spread to other Asian countries and slowly spreading to other continents.

The crypto market has faced lot of fluctuations since the outbreak. With the corona outbreak, cryptocurrency prediction for 2020 have taken a different turn

Other Miscellaneous factors.

Now, we have seen what are the factors that affect the cryptocurrencies. Let us have a look at how the bitcoin and some altcoins price will fare in the upcoming year 2020.

How the Crypto market will be Affected in 2020?

Bitcoin Price Prediction 2020

It is common knowledge that whenever cryptocurrency is mentioned, Bitcoin is the first to come to all of our minds. Let us first analyze the topmost cryptocurrency in this prediction, Bitcoin market in 2020.

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Bitcoin, since its inception, has seen steady growth. It had reached an all-time high on Dec 2020, around $19k. Following that, the BTC price has seen a downtrend with occasional upsurge.

Based on the current market, Bitcoin is said to reach its all-time high of $20,000 by the first quarter of 2020. The second half of 2020 is what will be a deciding factor for Bitcoin price. With the scarcity of BTC Coins, the price is bound to increase in the second half. One of the influencers, John McAfee believe Bitcoin will rise with 100% and trade at $1 Million by 2020 end.

Ethereum Price Prediction 2020

It is the second most popular cryptocurrency next to the BITCOIN. Ethereum went live in July 2020. Since then, if we look at the growth chart, there is a steady increase until 2020 end. However, in Jan 2020 the ETH price took a great upsurge reaching its highest ETH/USD price of $1396.42. Following that, the year 2020 and 2020 price saw a decline in the ETH prices. As of now, Ethereum’s price has a slight variation of around 1 to 2% leaning either on the positive or negative side.

Analyst CoinKir’s technical analysis expects Ethereum to start 2020 at around $720 and then slowly increase. By the end of 2020, they expect Ethereum to become more than double, to $1488. Another prediction comes from LongForecast service which predicts Ethereum price to face up’s and down’s ranging between $474 up to a high of $672. So is this possible? What do you think?

XRP Price Prediction 2020

Moving onto the next altcoin. Ripple (XRP) is also among the top 5 cryptocurrencies. After Ripple was created in 2020. However, the price gained momentum, not until 2020. In Jan 2020, the XRP/USD price reached its peak at approx $3. Since then, to date, we see a lot of activity in the price chart.

Ripple price has the potential to hit $1.0 by the end of 2020 and increase towards its all-time high by the end of 2020. Tremendous growth is expected in 2020. According to another analyst WalletInvestor, XRP price may rise by 380 percent and reach $0.6-0.7 in a couple of years.

I have listed how some of the coins will fare individually in 2020. Let us see what the cryptocurrency prediction has to say in the upcoming Gregorian year 2020.

Cryptocurrency Forecast for 2020

As discussed earlier, this 2020 is gonna bring a lot of exciting changes and innovations in the cryptocurrency industry. The market analysis reports a steady rise in the no. of cryptocurrency and blockchain-related startups. Also, the ICO’s, mining, dApps, etc. are about to increase.

The blockchain industry is on the rise and expected to bloom in 2020. Many established companies like Coca-Cola, VISA, Walmart are adopting Blockchain in their day-to-day activities. Based on these analyses in cryptocurrency forecast 2020, it is easy to say that Cryptocurrency is the future.

Should you invest in Cryptocurrency in 2020?

The crypto market is still evolving and new coins or projects are being introduced at a faster pace. Many analysts are positive about cryptos in 2020. We bring forward some of the Analysts views:

  • Tim Draper, a Venture Capital Investor has predicted that the cryptocurrency capitalization will increase up to $80 trillion in upcoming years.
  • JP Morgan CEO, Lori Beer believes that Blockchain will replace the existing technology.

We think the cryptocurrencies on this list are among the top assets that will dominate in 2020. Should you wish to add some more points we might have forgotten, let us know on our Facebook & Twitter handle. We will surely consider it.

7 Must-Read Cryptocurrency Predictions For 2020

In our annual cryptocurrency predictions we forecast that the grand crypto bull market will continue in 2020

Our annual cryptocurrency predictions are a must-read. In the 2020 edition of our cryptocurrency predictions we feature the grand (secular) crypto bull market to continue even though some consolidation may be in the cards as per our Bitcoin forecast for 2020. Institutional capital will continue to pour into crypto even though this process appears to be going slower than anticipated. Crypto will increasingly integrate with real world applications. XRP will move in a wide rounding bottom formation which is ultimately bullish long term, as per our XRP price forecast. And Ripple’s Swell will set the bar for what ‘real life adoption’ means.

Let’s first review what we said last year, in all openness and transparency. We’ll continue with next year’s predictions.

Last Year’s 5 Cryptocurrency Predictions

In last year’s edition of our annual cryptocurrency predictions we predicted the following. We want to openly indicate what went well and what not in last year’s cryptocurrency predictions.

  1. Institutional money as the catalyst for the crypto bull market. It turned out that the crypto bull market continued, but it was not yet institutional capital driving it. This process of institutional money pouring into cryptocurrencies is going slower than expected.
  2. Bitcoin’s upside capped is what we said a year ago. This might still be the case longer term but for now it appeared that Bitcoin was the cryptocurrency that was most solid in its retracement in the 2nd half of 2020. Most cryptocurrencies fell back to their early 2020 lows while BTC is ending the year almost twice as high as its open.
  3. XRP becomes the new BTC. Here it becomes very interesting. XRP clearly is the cryptocurrency with most traction in real life. In terms of ADOPTION there is not any other cryptocurrency that comes even close to what XRP is doing, at scale. However, the XRP price has not reflected this potential. Admittedly, a big disconnect between the XRP price and our expectation a year ago.
  4. Only added value cryptocurrencies would do well. This appeared to be partially true. It is true that no value add cryptos did outperform, and are facing existential risks (rightfully so). However, several value add cryptos are ending the year on a not so positive note neither which is due to the crypto bearish bias in the 2nd part of 2020.
  5. Blockchain implementations would accelerate. This certainly appeared to be true, even though the number of crypto enabled blockchain applications were not the majority.

So with all this in mind what is in store for 2020? We feature 7 cryptocurrency predictions for 2020 in this article.

Cryptocurrency Predictions for 2020: Giant Secular Bull Market Continues

Bitcoin remains the leading indicator for the crypto market. According to its long term chart BTC looks to be building a long term base.

The long term chart suggests that the pace of the ongoing bull market #3 might slow down compared to the previous bull market #2. Note the emphasis on the word ‘might’. It is not a given, but it might happen.

Based on how Bitcoin will behave around current price levels we might need to adapt our investing strategy: from buy-and-hold to a combination of holding for the long term with medium term trades. How, how much, when … all these questions are what we solve in our premium cryptocurrency investing service. We guide our members in a way not anyone else is doing.

Presumably Bitcoin needs additional time before moving to a state of accelerated rise. That’s in our opinion the message of this chart.

All in all the message of the long term BTC chart is this: the grand secular Bitcoin bull market is still in place, and not going anywhere in the foreseeable future. Similarly, the grand crypto bull market is still intact, in 2020 and beyond.

Cryptocurrency Predictions for 2020: ‘Risk On’ Markets Supportive Of Crypto Bull Market

This may seem like a not very intuitive prediction but we feel strong that this will be a relevant as well as an important one for 2020.

In order to understand this point we have to take one step back. BTC is increasingly connected to the rest of financial markets which is because of the introduction of futures. More than any time before are large traders able to switch their capital from non crypto markets (like stocks, currencies, commodities, gold) to BTC, in two directions.

Because of this we believe crypto markets are more subject to the tactical risk cycles.

As per our annual forecasts we believe that a new RISK ON cycle has started in November of 2020: Small Caps Break Out as well as our Dow Jones forecast.

The likelihood of a continued bear market as well as big crashes in BTC in 2020 are decreasing expotentially.

Cryptocurrency Predictions for 2020: Institutional Capital Pouring Into Crypto Investments

As said in the introduction the capital from institutional investors came into the crypto market but at a lower pace than expected. Institutional investors need to manage their crypto investments in a different way than the retail public, and have different legal obligations as well as specific restrictions and requirements.

Case in point: Bakkt took almost a year longer than planned to launch to the public. Yes they are growing fast, but started from scratch.

According to this Coindesk analysis there is a slow learning curve among institutional investors. This quote says it all:

The reality is that institutional investors are slowly getting comfortable (learning), and this process will continue to take time. Despite educational progress through 2020, some institutions are wondering if it’s too early to be investing in this space, and whether they can potentially get involved in investing in digital assets in the future and still generate positive returns, but in ways that are de-risked relative to today. Despite a few other challenges imposed on larger institutional investors with respect to investing in digital assets, true believers inside these large organizations are emerging, and the processes for forming a digital asset strategy are either getting started or already underway.

Institutional capital will make a difference, but it will take some more time to reach the tipping point. It may start in 2020 but also in 2021. One thing is sure: in 2020 there will be an acceleration when it comes to institutional capital inflows.

Cryptocurrency Predictions for 2020: Integration with Real World Applications

We will increasingly see integrations between the ‘real world’ and the crypto world.

If you think about it so far the crypto and blockchain world has been pretty isolated. A world that stands on itself.

We believe that 2020 will be a pivotal year in which blockchain / crypto moves closer to the real world. Especially in the enterprise world we will see ways to open up real life data integrations with blockchain / crypto applications.

Case in point: Chainlink is doing amazing work in this field. The list of Chainlink’s partners is pretty impressive, and it illustrates our point. Companies like Google, Alibaba, Oracle, etc are interested to connect data applications ‘offchain’ to the blockchain through Chainlink. See this list here and here. The transaction based statistics of Chainlink show their growth: see this tweet.

Cryptocurrency Predictions for 2020: Adoption Will Beat Non Adoption

Adoption is the what will make the difference ultimately, also in cryptocurrency prices.

However, we did not see an adoption driven price discovery mechanism in 2020. And given the evolution of the crypto market it will not be the key driver for all cryptocurrencies neither in 2020.

The one exception that might start making a difference is XRP. The adoption of XRP in transactions starts becoming really significant. The demand for XRP is growing significantly. With the partnership between Ripple and Moneygram (one of the largest money transfer services worldwide) it is clear how fast the volumes are growing that XRP is transferring from one currency into another currency (one source and another source).

Fortune.com featured the $200M that Ripple raised to accelerate the XRP adoption process (right before 2020 kicked in).

There are only a handful of other cryptocurrencies that come close to similar signs of growing adoption. But 99% of cryptocurrencies show no sign of adoption whatsoever. Sooner rather than later they will disappear.

Cryptocurrency Predictions for 2020: XRP Consolidates in a Wide Rounding Bottom Formation

From a price perspective the breakdown of XRP was an important event of 2020, which came half a year after the amazing crypto rally of April/June.

We believe that XRP is setting a giant rounding pattern. A major rounding bottom or ‘saucer base’ in more technical terms. Eventually this will resolve to the upside, and we believe that XRP will set a major bottom in the first half of 2020 before starting its steady rise.

Our longstanding price target of 20 USD is still valid. XRP will not trade at 20 USD in 2020 obviously, that’s a bit too ambitious, but it will set the stage in 2020 for an accelerated rise later down the road.

Cryptocurrency Predictions for 2020: Ripple’s Swell to set the Bar for Adoption

Last but not least we believe that Ripple’s annual event ‘Swell’ will increasingly set the bar for adoption.

The type of conversations and evolution that was presented at Swell in 2020 is amazing. Again, no other cryptocurrency comes close to achieve what Ripple is doing, which in turn helps realize the full potential of the XRP ecosystem.

Cryptocurrency Predictions Log: Weekly updated throughout 2020

This is a weekly log to keep track on our crypto predictions for 2020. We update this log on weekly basis with short bullet points to highlight whether the crypto market in 2020 is developing according to our cryptocurrency projections outlined in this article.

  • First week of January: we see encouraging signs on the BTC chart as the leading indicator for the crypto market. The odds favor a reversal to take place which should help BTC as well as the entire cryptocurrency market tremendously.
  • Second week of January: a great start of the week for the price of BTC and other cryptos. They are rising along with BTC. We couldn’t imagine it better than this, great start of the year 2020.

Stay tuned, and keep following our work to get updates on the crypto market. We strongly recommend to sign up to our premium crypto investing service (detailed actionable real-time insights).

Weekly Cryptocurrency Market Outlook Dec 1

BTCManager’s Weekly Cryptocurrency Outlook highlights the price action and technical indicators on a long-term basis to identify the best opportunities in the largest cryptocurrencies, such as bitcoin, ether, and others.

BTC-USD (Bitstamp)

The monthly chart below shows that BTC-USD displayed its strongest gain in a month during November, setting up for further gains in December. Also, the market closed in the top third of the range over the past month, above $9448.52, suggesting bulls will remain in control for the time being. However, the monthly close was below the Fibonacci resistance at $10,076.44, suggesting bulls were not completely dominating. Nevertheless, the price action on December 1 has exceeded the Fibonacci resistance again, with the market trading above $10,200 at the time of writing. Further resistance is seen at $13,226.34, the third Fibonacci extension level.

To give further confirmation of a long-term move toward $13,266.34, we look for a weekly close for BTC-USD above $10,076.44. So far this week, the market has made an attempt above this level but were pushed back down by sellers. Therefore, we await the weekly close before deciding on long-term positions.

The daily price action on the Bitstamp exchange is displayed below. We see that a fractal resistance will form at the all-time high at $11,395, unless the market breaks above this level by December 2. We also see from the chart below that the market tested the conversion line (blue), which has provided strong support at $9635.50.

After a bullish run and the conversion line turns horizontal, it is usually a good time to buy in on the ongoing trend. Therefore, we should look for the conversion line to start creeping higher again in the next day or so, which will give a signal that the uptrend will continue. Conversely, if the conversion line starts trending lower, we should prepare for a move toward the base line (red), which lies at $8475.275, providing another critical support zone.

A daily close above $10,076.44 has not been achieved yet, as shown above. Once the market’s closing price for a daily trading session is above the Fibonacci support, we will get bullish confirmation and look for the price to test further resistances at $12,883.10 and $13,226.34. Support is shown at $10,084.19 and $10,076.44.

ETH-USD (Kraken)

Ether also closed at its highest ever level as we entered December, with ETH-USD managing a monthly close at $439.25. Since the market closed the month above the previous all-time high at $404.90, we look for ether to drift toward the $651.62 extension level, shown below. Supports are shown at $404.90 and $388.00.

The weekly price action below shows that $470.00 is a key balance point. Notice that the bullish saucer signal was triggered this week when ether moved above $470. However, ETH-USD only managed to reach as high as $498.90, before reversing. We look for another move above $470.00 to confirm a longer-term move toward $651.62. Given that the bullish saucer signal has already been confirmed, we could enter long positions at the current market price, or alternatively, wait for more confirmation with a move back above $470.00. Also, we could enter the upward trend when the market test the support provided by the conversion line, which stands at $387.45.

The market closed above $404.90 for the first time on the weekly timeframe, giving an indication of a move toward $651.62. Already, the market has tested the $404.90 as a support level, indicating that the market will now look for a new ceiling.

The daily chart below shows that the support provided by the conversion line remained intact, despite a drop toward $400. The market now looks to head upward, following the conversion line higher.

BCC-USDT (Bittrex)

Bitcoin cash closed in the middle third of its price range for November, suggesting indecision in the markets. Buyers were beaten back from the highs above $2,500 with November’s close way lower at $1328.66, suggesting December is more likely to see downside for the altcoin rather than a continuation of the upward move.

The weekly price action below shows that the market is testing the 50 percent Fibonacci support at $1390.05, as well as the conversion line providing support at the same level. A weekly close below $1390.05 will give a bearish signal and see bitcoin cash test the supports at $1128.80 and $805.58. A 100 percent retrace should not be ruled out either, which would suggest a long-term decline to $283.10, the low from October.

The daily chart shows that bearish momentum is starting to take hold, as shown by the Awesome Oscillator, which has turned red and looks to dive toward the negative zone. The Ichimoku cloud remains thin and has changed color to green, but could easily change back to red again unless there is some upward momentum that kicks in. Notice also that the base line (red) is above the conversion line (blue), suggesting bearish momentum is starting to take hold. Volume is also falling on the Bittrex exchange, suggesting interest in the pair is dwindling and points to further losses in the days ahead.

XRP-USD (Bittrex)

The monthly chart below shows that ripple may enjoy bullish momentum and push toward the all-time high in January. Notice that the Awesome Oscillator is forming a bullish saucer, which will be triggered in January 2020 with a move above December’s high.

The market seems to have found support at the 38.2 percent Fibonacci retracement level and has continued higher since testing this level over the past month or so. Immediate resistance is found at $0.2862, where a break of this level will open up further resistances at $0.3520 and $0.4583.

Also notice that the conversion line (blue) is starting to diverge from the base line (red) and move higher, suggesting bullish momentum will start to dominate in December and the months ahead, if the trend of the Ichimoku indicator continues.

LTC-USD (Bitfinex)

Litecoin saw the highest monthly volume since April 2020 during November on the Bitfinex exchange, pointing to further gains for the altcoin in the next few months. Litecoin flirted with the $100 level for the first time in November, but bears beat the market down to close at $85.768 for November. Nevertheless, we get a bullish signal from November’s price action. Since LTC-USD closed above the peak of the lagging line (purple), which provided resistance at $72.691, we should see buyers unrestricted in terms of moving upward and see another attempt at $100. Also, in event of a downturn, we should look to buy near at the former resistance, now turned support level at $72.691.

Looking at the weekly price action below, we see there is a good likelihood that LTC-USD will tend toward $128. For instance, the bullish saucer was triggered this week with a move above $89.393 and the current market price is resting above this important balance point. Moreover, a weekly close above $93.716 will give stronger confirmation that the market will attempt new highs and target the $128.08 Fibonacci extension level. Finally, we also see that volume has been fairly consistent over the past few weeks, with four consecutive weeks of buying volume that is slightly increasing.

DASH-USD (Bittrex)

Dash experienced its highest ever monthly volume and price gain on the Bittrex exchange in November, as shown below. The market has broken the previous all-time high above $400 and exceeded the first Fibonacci extension level at $665.28 to reach new highs near $850. The first Fibonacci extension level provides support, whereas the next resistance is suggested above $1000. Notice, that the second Fibonacci extension level provides a target for bulls at $1071.67.

More resistance levels are revealed when looking at the weekly price action below. The $900 handle may put up stiff resistance, as the Fibonacci extension level below suggests we will see selling interest around $892.61. Immediate support lies at $596.89.

ETC-USD (Kraken)

Like Dash, Ethereum Classic also experienced its best performance during a single month on November, breaking above the $30 handle for the first time. Also, the market closed above the conversion line (blue) for the first time since May and broke the only fractal resistance at $23.779, suggesting upward momentum is likely to strengthen over the next month or two.

The daily chart below illustrates the important resistance and support levels to watch. December 1’s price action has broken above $28.574, suggesting the next resistance will be tested, the all-time high at $32.180. Supports lie at $26.343 and $24.54. A break of $32.18 gives a strong possibility that ETC-USD will reach $41.623, the first Fibonacci extension level; therefore, we set limit buy orders at $32.28 with a target of $41.523.

XMR-USD (Kraken)

Monero continues its upward trend, looking to attempt the Fibonacci extension level at $241.71. The chart below shows that the conversion line (blue) is trending higher this week, while the pitchfork shows that the altcoin is having trouble breaking through the middle channel. By the end of 2020, we could see XMR-USD attempt the $241.71 resistance. The $200 psychological resistance also stands in the way.

The daily chart below shows that XMR-USD has tested the $159.90 level as support and has continued higher on December 1. Since the market is closer to this major support zone, we expect the upward momentum to resume. Another key resistance is at $194.94 and a daily close above this level will give stronger confirmation of a move toward $241.71. Therefore, we could set limit buy orders at $195.04 with a target of $241.61. The conversion line (blue) provides support at $178.26 for December 1; a daily close above this level will be considered bullish, whereas a close below $178.26 will open up the support at $145.06 (base line).

VTC-USD (Bittrex)

As the halving approaches for vertcoin, the cryptocurrency has broken above the $6 handle on December 1. The halving of Vertcoin’s block reward will take place on December 12, and is the first such event for the altcoin. The monthly chart below shows that November’s price action failed to establish a higher close than that from February 2020, where VTC-USD closed at $5.49. November’s close managed to reach $5.31, but December’s close looks to be the highest ever monthly close for VTC-USD. Volumes in November were comparable to those in October, with strong buying volume supporting the altcoin’s rise and foretells of further appreciation.

The weekly chart below shows that the current market price is moving above the recent high at $6.06, opening up a move toward the Fibonacci extension level at $9.32. A weekly close higher than $6.06 will give stronger confirmation of such a bullish move. The altcoin has yet to test it’s all-time high at $7.1925 and is looking likely this level will be attempted in December with the halving taking place on December 12. Supports are seen at $6.06 and $4.81.

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