The price of bitcoin will rise to $20,000 in three to six months

The price of bitcoin will rise to $20,000 in three to six months and to $50,000 in 2021, and Kelly believes bitcoin's fundamentals are in better shape than gold to drive it higher. In an interview, Brian Kelly made bullish predictions about the price of Bitcoin (BTC). She said bitcoin would hit a high of $20,000 in the next three to six months. Kelly is optimistic about next year and thinks the price of the cryptocurrency will rise to $50,000.

Kelly affirmed that his opinion is not biased due to the share on his crypto investment fund. On the contrary, the investor affirmed that Bitcoin has better fundamentals. One of the fundamentals that Kelly named is the stock-to-flow ratio. Compared to gold, Kelly said, Bitcoin’s is much more scarce after the halving. In addition, he stressed the historically high importance of the halving as a catalyst to drive Bitcoin’s bullish cycles:

The stock-to-flow ratio is better than gold at this point because we had the halving. And, when I look at Bitcoin cycles, bull markets tend to cluster around halvings. So, we’re on our way to a bullish cycle like 2016. And that implies that somewhere in Q2 of 2021 you have a Bitcoin price of $50,000.

A lot of the investors who had $1,000 or $2,000 in Bitcoin in 2017, didn’t think it would reach $20,000. We know that Bitcoin is extremely volatile, it’s highly speculative, and when you go into these speculative rallies, it goes beyond what people think.

The investor also highlighted the importance of Bitcoin’s recent break beyond the extremely important resistance of $10,500. Every time this happens, Kelly said, an asset keeps going up. This is part of what he called “trading 101”.

The investor also defended his prediction by highlighting the performance of the cryptocurrency during 2020. Since the collapse of the market due to the “Black Thursday,” caused by the spread of the Covid-19 pandemic, when Bitcoin traded at $3,500, the cryptocurrency has tripled in price. However, he also noted that Bitcoin investors can rarely predict the movements that the cryptocurrency will make:

At the time of publication, Bitcoin’s price stands at $11,100 with a 0.38% gain in the last 24 hours. In the monthly and weekly charts, Bitcoin is showing gains of 20.81% and 17.66% respectively. Conversely, gold is at $1,956 with a gain of 9,9% over the last 30 days.

After Kelly made his prediction, another member of CNBC’s Fast Money team, Guy Adami, raised his voice and contradicted Kelley. When choosing between gold and Bitcoin, Adami chose the first option and repeated the name of the precious metal several times.

Author : Reynaldo