Bitcoin has enjoyed a positive start to the year with the leading cryptocurrency experiencing a significant increase in price which has positioned the coin to surpass the $10,000 mark once again.
Due to the volatile nature of the crypto market there is always the debate of how long the current bullish run could last with analysts differing in opinions.
Crypto analyst believes run would last 1000 days
The recent decline in the price of Bitcoin has brought about the speculation of how sustainable the current rally is and if it can be maintained until the halving expected to occur in May.
However top crypto analyst James Todaro believes that the current crypto trend will be maintained for at least 1000 days. According to Todaro, the average weighted price by volume can give an indication.
He revealed that the average volume-weighted price of Bitcoin has been $9,120 since the beginning of the year. While during the bullish rally of 2017, even when BTC was about to hit $20,000, this average price was just $6,125.
Todaro, therefore, concludes that the bullish rally of 2020 has the potential to be much longer than that of 2017. This assumption is not without fault since by observing the weighted price of Bitcoin during 2018, It was also superior to 2017, without any bullish rally.
Bitcoin has witnessed a bullish rally in 2020
The price of Bitcoin is always an important issue within the crypto world due to its position as the leading cryptocurrency.
Also the higher the price of BTC the more interest it generates for other cryptocurrencies which is seen with the level of engagement on popular social network platforms like Twitter during bullish periods.
The bullish rally that occurred in the first weeks of the year was received with optimism as it was unexpected and brought about increased interest in the crypto market.
The price increase was driven by three major factors. The first being the close proximity to the halving expected to occur in the Bitcoin blockchain. The process is expected to make the coin scarce thereby driving an increase in its price.
Secondly was the terrible effect of coronavirus which has threatened the stability of the world’s second-largest economy China and affected several countries. Investors have looked to protect their assets from collapse and Bitcoin has increasingly been a major asset for such purposes.
Finally, the price momentum of BTC has forced traders to acquire more of the cryptocurrency. This is because there is a rush to partake in the next major bullish run that could see the coin reach record levels.
This has led to the increase in demand of BTC which has driven up the price of the cryptocurrency.
It remains to be seen whether Todaro will be proven right with his predictions as BTC is currently priced at $9,700 as at the time of publication.