Why Experts Are Bullish About Bitcoin’s Halving in 2020

What is Bitcoin Halving?

In a nutshell, Bitcoin halving is something that happens every four years, where the volume of Bitcoins mined every day is lowered by half, thereby reducing the supply of Bitcoins. What generally happens when there's less gold in the market? Prices rise. That's the gist of it.

The three expert analyses we'll cover in this article are those of Willy Woo, Bob Loukas and Dave the Wave. Who are they and what are their predictions?

• Willy Woo is a venture capitalist and startup builder. He was named one of the world's top 5 token analysts by Coindesk in 2017.
• Bob Loukas is a world-leading expert in market cycles with over 25 years of experience in market analysis and trading.
• Dave the Wave is a prominent cryptocurrency trader known for making eerily accurate price predictions.

Ready? Let's dive in.

1. Willy Woo: "Bitcoin hitting $135,000 is common sense"

Industry expert Willy Woo is cautiously bullish about Bitcoin's potential, as indicated in his most recent predictions. This includes an interview he did with the Keiser Report in early March. During which he said that Bitcoin could cross the US$100,000 price mark after the halving in May in due time.

Woo then goes on to say that "common sense predictions" based on market cycles show that Bitcoin will likely rise to a valuation of around US$135,000 and could go all the way up to US$250,000 depending on how long the bull market runs.

Woo's predictions, or forecasts as he prefers to call them, are made based on derivatives of historic price, volume and blockchain data. His area of expertise is on-chain analysis and predicting medium-term price directionality.

Three reasons why Woo is bullish about Bitcoin halving

Firstly, Woo argues that the current economic climate is exactly what Bitcoin was built for. Woo points out that legendary investor Ray Dalio also believes that 2020's events will be a major economic turning point. Which could result in a fundamental change in how we think about and use money.

Secondly, Woo believes that Bitcoin can serve as a safe haven amidst global market volatility. This is in part because unlike other assets, Bitcoin's production costs are not only lower but also more predictable. Since the cost of "mining" digital currencies such as Bitcoin is built into their algorithms and generally set in stone.

Thirdly, while Bitcoin is considered the most mature cryptocurrency in the market. Woo believes that the coin still holds far more growth potential than other assets which have already reached adoption saturation. One could certainly argue that there are only so many viable companies to invest in and plots of land to build on. But the potential adoption of Bitcoin and digital currencies remain virtually limitless.

2. Bob Loukas: "Next 3 years look good for Bitcoin"

Market cycle trader Bob Loukas is known for his four-year cycle theory, in which he studies a slew of historical price events to identify patterns that form the beginning and end of four-year market cycles. He is also known for correctly predicting that Bitcoin would close out 2019 in the US$7,000 range.

According to Loukas, the last Bitcoin cycle ended around December 2018 and we are currently in a new bull market which began in early 2019.

Here's what Loukas' mathematical crystal ball says:

Firstly, Loukas expects Bitcoin to grow steadily in 2020, but with a chance of a 6-month downtrend early in the year. While this prediction was made in December 2019 long before the novel coronavirus outbreak became a pandemic, his analysis appears to have held true so far:

Secondly, based on previous trends, Loukas expects the current cycle to peak around summer 2021, i.e. the second and third quarters of 2021. He also expects Bitcoin prices to take a big dip in late 2022 and therefore advises traders to be patient and to play the long game.

Nevertheless, given the current pandemic-fuelled market volatility, Loukas believes that a few surprises could be in store for Bitcoin in the short term, though he maintains optimistic about Bitcoin's potential as a long-term investment asset for the rest of the current four-year cycle.

3. Dave the Wave: "One long extended bull market..."

Prominent crypto trader Dave the Wave is known for his predictions that are made based on the Elliott Wave Theory. A method of technical analysis that identifies cycles based on the position of a wave amid larger market currents. The Elliott Wave Theory is realized when five waves move in the direction of the main trend. Followed by three correction waves.

Dave is also known for correctly forecasting a short-term bearish trend for early 2020 months ago. For bursting the hype bubble when Bitcoin was trading at over US$10,000.

According to him the dip in Bitcoin prices in early March will lead to the beginning of a long-term uptrend that will bring prices to US$25,000 in early 2021. Followed by a short correction wave, and finally a final bull run past US$100,000.

In his words, the current wave is simply "one long extended bull market punctuated at times by corrections."

Bitcoin as "hurricane insurance"

Others such as Travis Kling, the chief investment officer of Ikigai Asset Management clearly agree with this sentiment. Kling even went as far as saying that Bitcoin should be regarded as an insurance policy against the current financial system.

This about it: while central banks around the world are rushing to print more money to keep their economies afloat. Bitcoin is expected to reduce its supply by half --- right on schedule. No drama, no exceptions.

Veteran investor and former Goldman Sachs partner Mike Novogratz concurs with the view that the current economic climate is exactly why Bitcoin was created. As he explained why he was still bullish on assets such as real gold and digital gold.

What do you think? Are you sold on Bitcoin'