What are the Forex Mechanical Systems?

We have four mechanical Forex strategies that must be learned as they are important to build a good Forex strategy plan.

The four Forex Mechanical Systems are:

1-HLHB Trend-Catcher System

2-SMA Crossover Pullback

3-Short-Term Bollinger Reversion Strategy 2.0

4-Inside Bar Momentum Strategy 2.0

We’ve got a table for their performance report, but keep in mind that the time periods, trading assumptions and type may result in a variation of performance.

Now we are going to illustrate each system strategy.

HLHB Trend-Catcher System

The Huck Loves Her Bucks mechanical system uses a simple EMA cross method, combined with the RSI and ADX indicators, to catch short-term trends on the 1-hour charts of EUR/USD, GBP/USD, and USD/JPY.

In this week’s update, Huck is celebrating a 268-pip win (+0.89%) even as she’s closely monitoring fresh trades that could very well be fakeouts for next week’s trends.

SMA Crossover Pullback

Robopip’s newbie-friendly SMA Crossover Pullback trading system is as simple as its name suggests. This strategy features an SMA crossover method to gauge the trend and a stochastic pullback entry signal on the 1-hour charts of EUR/USD, GBP/USD, and EUR/JPY.

For the past week, this trend-following system had another rough run with early exits on new crossovers. All in all, it wound up with a 93-pip or 0.62% loss.

Short-Term Bollinger Reversion Strategy 2.0

This Short-Term Bollinger Reversion Strategy 2.0 is one of Robopip’s newest creations and is currently being tested on range-bound pairs like CAD/CHF and USD/CAD.

Only CAD/CHF was able to catch valid signals for the week, even though USD/CAD did make a few bounces off the bands. Still, the system was able to chalk up a gain of 16 pips or 0.32% for the week.

Inside Bar Momentum Strategy 2.0

Another tried-and-tested system is Robopip’s Inside Bar Momentum Strategy 2.0 which monitors purely candlestick price action, free of any technical indicators, on the 4-hour charts of GBP/JPY and USD/JPY.

Both USD/JPY and GBP/JPY caught two losses and one win each, ending up with a loss of 46 pips for the week.

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➤Six Actions Needed for Every Successful Forex Traders

➤Most Important Forex Signals 2019: Buy&Sell (Part1)

Six Actions Needed for Every Successful Forex Traders in 2020

 Forex is one of the most profitable businesses. Also, it's the most risky business.

Many technical knowledge, information and experience needed to reach your goal.

 Your goal is to be rich and make a good amount of money. Isn't it? Okay, now we have to answer the next question.

 Can you get rich trading Forex?

  The answer is yes! 

But you have to focus on the process and forget about trying to strike it rich. Focus on the process and the profits will follow.

What about successful Forex traders and what makes them different from the others?

In the Forex world about 80% of Forex traders do not succeed, especially at their start.

Why this big percentage?

Successful Forex traders think differently from the rest. They aren’t concerned with needing a high win rate or trying to trade every day regardless of market conditions.

So Who Are the World's Best Forex Traders?

1-Stanley Druckenmiller:

Stanley Druckenmiller has long considered George Soros his mentor. In fact, the two worked together at the Quantum Fund for more than a decade.

He was even there during Soros’ famous Black Wednesday trade in which they “broke the Bank of England” when they shorted the British pound in 1992.

The duo reputedly made more than $1 billion in profits from the single trade.

Stanley Druckenmiller left the Quantum Fund to start his own fund, Duquesne Capital. Duquesne Capital Management is famous for posting an average annual return of 30 percent without a losing year.

2-Bill Lipschutz:

He’s known for turning $12,000 of inheritance money into $250,000 while still in college.

Shortly after turning $12,000 into $250,000, he made one bad investment decision that nearly cost him the entire account. He was back to square one.

Lipschutz joined Salomon Brothers in 1984 as part of the newly formed Foreign Exchange Department.

One year later he was making $300 million per year for the firm.

Six Actions you need to have, in order to follow the steps of the successful Forex traders:

1-Use Price Action

Every successful Forex trader I’ve met uses price action in some way, shape or form.

This doesn’t mean they’re using price action in the same way I use it, but they are using some form of price action as part of their trading strategy.

Whether a trader is using raw price action or simply using it to identify key levels in the market, price action plays a major role in any strategy.

That’s because it serves as a representation of the psychology within a market. It gives us some insight into the minds of other traders.

Having some idea of where buy and sell orders are located in the market is critical to becoming the best Forex trader you can be. It can strengthen any trading strategy by providing areas to watch for potential entries as well as profit targets.

2-Have a Defined Trading Edge

An edge is everything about the way you trade that can help put the odds in your favor.

It’s a combination of the time frame you trade, the price action strategies you use, the key levels you’ve identified, your risk to reward ratio, and other factors. It even includes your pre- and post-trading routine.

How do you handle losses? What do you do when you win? These are all things that make up your trading edge.

Although there are dozens of factors that make up your edge, you don’t have to master all of them at once. Nor do you have to master all of them to start putting the odds in your favor.

It’s better to master one set of factors and then slowly expand to others to further define your edge. Not only is this a natural progression, it’s the preferred way to learn.

3-Successful Forex Traders Don't Try Too Hard

This is different from studying hard. As a new trader to Forex, studying the market is highly recommended.

For instance, you can’t spend too much time learning the ins and outs of the various currency pairs, or how to draw key levels. The harder you try to learn those particular topics, the better.

However, trying to make a trading strategy work will only lead to destructive behavior, such as emotional trading. Similarly, trying too hard to find trading opportunities is a good way to lose money on sub-par setups.

4-Think in Terms of Risk

As we said before, Forex is the most risky business and 80% of traders failed to achieve any success.

You may think that’s an obvious statement, but a surprising number of traders don’t think about how much money is at risk before opening a trade.

This is because they’re using an arbitrary percentage to calculate risk, such as one or two percent of their trading account balance.

Think about your last trade for a moment. Did you define the exact dollar amount at risk before putting on the trade? Or were you more focused on the number of pips and the percentage of your account at risk?

The convenience of Forex position size calculators has made it so that we never have to consider the dollar amount being risked. This convenience has caused a huge oversight.

5- Successful Forex Traders Know When to Walk Away

All successful Forex traders know when to walk away and take a break. Those who are truly passionate about trading Forex know how hard it can be sometimes to walk away from the market. Still, it’s necessary in order to become a successful trader.

Walking away can be especially difficult following a trade. This is because our emotions are running high and often get the best of us. But that’s exactly what makes walking away at this time so beneficial.

After a profitable trade

After a win, we’re feeling good about ourselves and our trading strategy. It feels like things are finally starting to click.

After a losing trade

What do you do immediately following a loss?

I can’t speak for you, but I know what I used to do. I would immediately start going through all my charts looking for a new setup with the intent of recovering what I just lost.

Whatever you do, don’t do this. It’s just your ego drawing you into one of the most common and costly traps in the Forex market.

6-Never Give Up

This sounds obvious, but it amazing, how often I see perseverance and grit left off the list of reasons why a certain trader became successful.

You can’t fail if you don’t quit.

That brings us back to the first section of this post where I mentioned passion. You can’t expect to achieve Forex success if you give up, and you can’t expect to persevere if you don’t have a passion for trading.

You must have a burning desire to want to succeed as a trader. Not because you want more money, but because you love trading.

Of all the ways to make money in this world, trading is arguably the worst choice.

Conclusion:

This actions must work as your policy. Work policy is important in this complex business. According to your policy you can select the best strategies that help you to enforce the policy.

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➤ How to create your Forex trading plan. 2019 Forex plan

Monday Report: Gold Falls and Copper Rises

Investing.com

 Gold prices drifted lower on Monday while base metals and bond yields resumed their march higher as political risks in both the U.S. and Europe abated.

Money poured out of haven assets and into risk-sensitive ones such as stocks and other commodities as investors took heart from the phase 1 trade deal with China that averted fresh import tariffs coming into effect at the weekend, even though it did little to undo the economic damage already done by an 18-month trade war.

By 11:10 AM ET (1610 GMT), gold futures for delivery on the Comex exchange were down 0.1% at $1,479.15 a troy ounce, while spot gold was little changed at $1,479.05 an ounce.

Silver futures held up better, rising 0.1% to $17.03 an ounce, while platinum futures rose 0.1% to $930.05, outperforming on the basis that both have industrial as well as investment uses.

However, on a risk-on day, pure industrial metals performed even better: copper futures rose 1.1% to $2.812 a pound, just below the seven-month high they hit on Friday in response to the trade news.

“Copper continues to provide the cleanest story for those who are upbeat about global growth in 2020,” J.P. Morgan) analyst Natasha Kaneva wrote in a weekly note. She argued that speculative positions on the Chicago and London exchanges which have been on balance short for most of this year turned net long last week.

“The question now remains if the outlook has improved enough to see the return to a sustained speculative long position,” Kaneva said. She implied that with global growth still far from the synchronized strength that drove the last copper rally in 2017/18, the answer is probably no – she sees fair value at between $5,900 and $6,170 a ton on the LME. On Thursday it was already trading at $6,186.75.

Data released earlier pointed to a bottoming out of the slowdown in China and Europe, rather than a real rebound. China’s retail sales and industrial production picked up a little, but business surveys showed Europe’s factory activity still shrinking. Business surveys in the U.S. – the Empire State Manufacturing Index and IHSMarkit’s manufacturing PMI -- sent mixed signals.

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➤ Gold consolidates in a range, just above $1500 mark and Bulls testing the $1520 resistance

Larry Kudlow: U.S. exports to China to double under 'Phase One' deal

(Reuters) WASHINGTON - investing.com

U.S. exports to China will double under the so-called Phase One trade deal reached between Washington and Beijing, a top White House adviser said on Monday.

"They're ... going to double our exports to China," National Economic Council Director Larry Kudlow told Fox News Channel.

Under the trade agreement announced last week, Washington will reduce some tariffs on Chinese imports in exchange for Chinese purchases of agricultural, manufactured and energy products increasing by about $20 billion over the next two years.

While U.S. officials have touted the deal, Chinese officials have been more cautious, emphasizing that the trade dispute has not been completely settled.

U.S. President Donald Trump has said negotiations on a "Phase Two" trade deal between the two economic giants would start immediately.

U.S. Trade Representative Robert said that a date for senior U.S. and Chinese officials' signing of the accord has not yet been determined.

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➤ Trade War News: China Claims Trade Optimism, Requests Sanctions Against U.S.

Trading war alert: Oil Tumbles as US Fuel Stocks Spike.

The buildup in stocks of U.S. gasoline and other fuels isn’t slowing, to the dismay of oil bulls. Neither is there word coming on whether China will avert new U.S. tariffs by Sunday.

Oil prices fell Wednesday following the latest report on U.S. supplies that showed an unexpected rise in crude inventories and very strong refining activity that produced a huge climb in gasoline and distillate stockpiles.

U.S. West Texas Intermediate, the U.S. crude benchmark, settled down 48 cents, or 0.9%, at $58.76 per barrel.

U.K. Brent, the global oil benchmark, closed the regular New York trading session down 62 cents, or 1%, at $63.72.

Crude inventories rose by 822,000 for the week ended Dec. 6, the U.S. Energy Information Administration said. The market was looking for a drawdown of 2.76 million barrels, according to analysts’ forecasts compiled by Investing.com.

Gasoline inventories soared by 5.4 million barrels, compared with expectations for a rise of about 2.5 million barrels. That was the largest weekly build in gasoline since January, according to EIA records.

Distillate inventories, meanwhile, climbed by 4.1 million barrels, versus forecasts for a build of about 1.6 million barrels.

“It appears once again that refiners are turning out products at a frenetic pace that the market probably doesn’t need and that explains the continuous builds in gasoline and distillates that we’re having,” Investing.com analyst Barani Krishnan said.

“Refinery runs are continuing at over 90% of standing capacity,” Krishnan added. “The drawdown of nearly 3.5 million barrels at the Cushing Oklahoma delivery point for WTI clearly shows the blistering pace of refining that’s going on.”

Imports ticked up for the week to nearly 7 million barrels.

“The takeaway for oil bulls would be the first dip in production for a long time, which the EIA estimates is down to 12.8 million bpd from a previous 12.9 million,” Krishnan said. “Also, exports of crude got a huge boost of 265,000 bpd last week.”

Also weighing on oil was the U.S.-China trade wrangle and how the Trump administration would proceed come Sunday, the deadline for the imposition of tariffs on another $156 billion worth of Chinese goods.

"The 500-pound gorilla in the trading room is whether a deal can be reached with China,” Tariq Zahir, founder of New York oil-focused fund Tyche Capital Advisors, said.

“If we do not see a deal reached, or minimally a delay in imposing new tariffs, we could see a substantial risk-off posture being taken in all asset classes across the board. Imposing the new tariffs, in our opinion, would lead to a risk off across everywhere."

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➤ Aramco Stock Soars Limit Up In Debut with value $1.7 trillion.

Aramco Stock Soars Limit Up In Debut with value $1.7 trillion.

by Getty image

The giant Saudi Aramco-oil company- is now the highest value of a company all over the world. With a value $1.7 trillion, Aramco exceeds Apple and Microsoft in the net value.

Saudi Arabia's oil company Aramco soared 10% limit up on its first day of trading, reaching a valuation of $1.88 trillion, higher than any other publicly traded company in the world. This means that pricing its IPO at $1.7 trillion.

The record valuation reflects an oversubscribed book of mostly local investors who bought shares on the Saudi Tadawul stock exchange after they were forced by Riyadh to pump the stock. 

Aramco only sold a tiny 1.5% sliver in the company, meaning that the kingdom and Public Investment Fund of Saudi Arabia (PIF) could easily manipulate the price with such a small fraction of the stock public. Aramco listed on the Tadawul exchange because of other international exchanges and their investors found it hard to value the oil company near the $2 trillion levels. 

"They have had to launch the IPO on their own stock exchange as the valuation was unlikely to be achieved elsewhere," said John Colley, associate dean at Warwick Business School in the U.K, who spoke with Reuters.

 Colley said the IPO pump is likely buyers affiliated with the kingdom.   Aramco sold .50% of its shares to individual retail investors, many of whom were Saudi nationals, financially incentivized by the kingdom. The remaining 1% were domestic institutional investors and other financial institutions from surrounding countries. 

Reuters noted that Aramco would be offering a dividend of at least $75 billion in 2020 to entice investors to hold. Also, investors who hold for more than six months could be rewarded with up to 100 bonus shares. 

Saudi Arabia's central bank doubled leverage for retail investors ahead of the IPO. 

State investment funds, like Public Pension Agency and PIF's Sanabil Investments unit, are among domestic institutions who were buying shares in the open market, reported Financial Times, adding that wealthy Saudi families were ordered by the kingdom to purchase stock.

As the FT reported ahead of the IPO, Saudi Arabia was "persuading" local institutions and wealthy families to buy shares in Saudi Aramco after its initial public offering, as part of a plan to drive up the stock price: the focus was to reach company’s $2t targeted valuation, and as of this morning, the company is more than halfway there from $1.7 trillion.

"Aramco should easily get to the $2 trillion valuation as soon as tomorrow; there is plenty of appetite for it," Marie Salem, the head of institutions at Daman Securities in Dubai, told Bloomberg.

 The Aramco IPO proceeds ($25.6 billion) will be used by Crown Prince Mohammed bin Salman (MbS) to fund his Vision 2030 initiative and transform the Saudi economy away from oil and gas. 

Monica Malik, the chief economist at Abu Dhabi Commercial Bank, told Reuters while Ice Brent Crude futures trade around $63-$64, the kingdom needs about $87 per barrel to balance its budget.

Source: zerohedge news

Most Important Forex Signals 2019: Buy&Sell (part2)

In this topic we will discuss the second part of Buy&Sell fore signals.

Related:  Forex Signals 2019: Buy&Sell (Part1)

Now that we’ve looked at the three candlestick patterns I use, let’s dive into the three chart patterns. These include the head and shoulders, channels and wedges.

The good news is that we don’t have to wait months or years to trade. With dozens of currency pairs at our disposal, there’s almost always something to do.

Chart Pattern Buy & Sell Signals

Head and shoulders

When it comes to profitability, the head and shoulders pattern is at the top of the list. It typically forms after an extended move up and signals exhaustion from buyers.

The inverse head and shoulders pattern also represents a potential reversal but does so after an extended move down and signals exhaustion from sellers.

The reason I say these formations can be highly profitable is that they often provide several hundred pips of profit if traded successfully.

Note that the head and shoulders also comes with what’s called a measured objective. This is a potential profit target that’s found using the height of the structure.

Channels (ascending and descending)

Channels occur more often than most traders probably realize. They are particularly plentiful after an impulsive move up or down. The channels that form in this manner are known as bull and bear flags.

If you’ve followed me for a while, you’ve no doubt seen me comment on either an ascending or descending channel. In fact, I bet not a single week goes by where I don’t use a channel to outline the price action on a given chart.

They offer an excellent way to identify and outline periods of consolidation which can provide an opportunity to play the subsequent breakout.

Note how the ascending channel above began forming after an extended move lower

Wedges (narrowing and broadening)

Like channels, wedges usually represent consolidation. However, what sets them apart is their terminal nature. In other words, a narrowing wedge has a definitive end point whereas a channel does not.

The two charts below show the difference between a narrowing wedge and a broadening wedge.

Note how unlike the narrowing wedge in the first chart, the price action in a broadening formation “fans out” as time passes.

Most Important Forex Signals 2019: Buy&Sell (Part1)

Trade is a combination of two simple processes (Buy-Sell). Forex is a type of trade, so Forex= Buy+Sell.

When to buy and when to sell is the core of a successful Forex trading operations.

Just about everything I do in the Forex market revolves around six buy and sell signals.

Three are candlestick patterns while the other three are chart patterns such as the head and shoulders.

You probably know I like to keep things simple. But simple doesn’t mean unreliable or unprofitable.

In fact, the simple buy and sell setups below are some of the most profitable patterns I’ve come across after more than a decade of trading.

There are many patterns of buy and sell signals. In this topic we will  discuss the most important signals.

Candlestick Buy & Sell Signals

There are three types of candlestick patterns I look for during a trading week. They are the pin bar, engulfing bar and inside bar. While the pin bar can be traded on the 4-hour and daily time frames, both the engulfing and inside bars are most effective on the daily time frame and higher. If you use them on any time frame lower than the daily you open yourself up to false positives.

Note how after closing below a key level, the pair formed a bearish pin bar after retesting the area as new resistance.

Pin bar

For those who have followed me for a while now, it will come as no surprise to hear that my favorite candlestick pattern is the pin bar. These candles are characterized by long upper or lower wicks and represent a rejection of support or resistance.

That last sentence is paramount to the effectiveness of the pin bar pattern. Without having a key support or resistance area near the candlestick, the formation is rather meaningless.

Engulfing bar

The engulfing bar is a reversal pattern that can often signal exhaustion from buyers or sellers. As the name implies, it’s a candle that completely engulfs the previous one.

One critical rule of using this signal is only to pay attention to the engulfing patterns that develop on the daily chart and above. Any signal on the  charts is unreliable in the sense that it could be a false positive.

Another important point is that the candlestick pattern must form at a swing high or low. Otherwise, it won’t signal the necessary exhaustion from bulls or bears that make it an effective reversal signal.

Note that the candle formed at a swing high and at a resistance level that had been in place for several months.

Inside bar

When I began trading with price action in 2010, I started with the pin bar and inside bar candlestick patterns. I figured I would learn the two signals inside and out before considering other more advanced patterns.

It was a good move. I always advocate sticking with one or two price patterns in the beginning before expanding your options. The fewer things you have to learn the easier it is to become proficient by honing in on the subject at hand.

But over the years I’ve moved away from trading the inside bar, at least to some degree. I still find one here and there that catches my attention, but for the most part, I don’t trade it.

That doesn’t mean it isn’t a profitable signal. It just means that it doesn’t suit my style as much as the other signals in this post.

With that said, for someone searching for a good trend trading signal, the inside bar is one of the best in my opinion. The key, however, is to make sure you stick to the daily time frame. Anything lower than that and you’ll end up with too many false positives.

The next topic will discuss the second part of Buy&Sell fore signals. It will be about Chart Pattern Buy & Sell Signals

Forex News: Dollar Surges Against Euro ($1.105)

Unstable Forex market due to Trading war and Brexit situation. It's an unpredictable period in the world economy.

Investing.com reported that Dollar Surges Against Euro ($1.105)

The U.S. dollar rallied on Friday as stronger-than-expected U.S. jobs gains last month reaffirmed beliefs that the economy remained on solid footing.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.35% to 97.75.

The U.S. created 266,000 jobs last month, topping economists' forecast of 186,000.

The unemployment rate unexpectedly dropped to 3.5% and wage growth slipped to 0.2% in November, lower than expectations of 0.3%.

Following the stronger-than-expected jobs report, TD economists said the Federal Reserve can sit comfortably on the sidelines after cutting rates three times this year.

"As long as international risks do not intensify and hurt confidence domestically, the American economy will remain in expansion, supported by a healthy consumer," the firm added.

The euro, which was already under pressure amid weaker German data, fell 0.45% against the greenback to $1.105.

USD/JPY fell 0.12% to Y108.62, while USD/CAD jumped 0.67% to C$1.326, with the latter coming under pressure following a weaker-than-expected Canadian jobs report.

The plunge in the loonie comes amid reports that Bank of Canada governor Stephen Poloz is set to step down just days ahead of the central bank's interest-rate decision.

GBP/USD slipped 0.23% to $1.312, giving up some of its gains earlier this week, when the pair hit seven-month highs on bets that the Conservative party in the U.K., led by Prime Minister Boris Johnson, would likely win a majority of the seats in the General Election.

With a Tory majority, Boris Johnson will likely be able to get his Brexit deal approved, ending the current parliamentary deadlock on Brexit, which has weighed on economic activity.

Bitcoin Forecast for 2020. Bitcoin price may reach ($30,000)

Bitcoin is reaching the end of the year very close to multi-month lows. Yet there are good reasons to expect the price of Bitcoin to begin a recovery from a low of around $5,000 to $6,000 and rise over 2020 to end the year between $15,000 and $17,000. Financial experts predict that the year 2021 is likely to see Bitcoin reach $30,000.

Investors and traders fret over price forecasts concerning Bitcoin, as the price of the digital asset has been very unstable and extremely challenging to forecast. After a year of market pullback in 2018, Bitcoin has staged a few bullish runs in 2019, followed by a bear run. In a bid to predict the price of Bitcoin using technical and fundamental analysis, I will make a full use of the repetitive nature of Bitcoin’s historical patterns which are mostly reflections of impending events and buyers’ behavior to make a Bitcoin price prediction for 2020.

Bitcoin in 2019

In June 2019, Bitcoin recorded its yearly high after hitting close to $14,000. Then, Bitcoin went into a free fall as the supply driven by high price per coin overpowered the purchasing power of buyers. The descent of the Bitcoin price was saved by a support point created by the buyers’ response to the fall in price, holding the price above about $10,000 until September, when the price began to fall again lower than $8000.

Bitcoin Technical Analysis: Short and Medium Terms

Before going further, it is important to say that the Bitcoin price will make a further fall in the short term as a key support line has recently been broken, and unless the price is held by a concentration of buyers further down the price curve, the price may touch close to $6,500 in the short term if the $7,000 support line is broken, make a rebound into the $7,500 and $8,000 price zone and then head back above $10,000 over the medium term. After this, I expect the price will consolidate for a while before going on to break its all-time high in 2021 after the Bitcoin halving 2020 event which will occur in May 2020. The reasoning for these predictions will be explained below.

In the above price chart, Bitcoin found a key support point of $10,100 after it took a strong fall from its yearly high. On 22nd August 2019, the price pegged at a support point of $10,100 after failing to break the resistance at $10,300. The price then fell to peg at $10,100 once again on 25th August, took a rebound to a little above its resistance point and pegged at its support point again on 28th August. At this point, the supply had overpowered the demand causing Bitcoin to break its support point to fall as low as $9,400 on 29th August. At that price, buyers bought more of the asset to send the price above its previous point to trade around $10,800 on 6th September 2019. Bitcoin found another key support point at $7800 on 30th September, 7th October, and 24th October as it struggled to surpass its resistance price of $8,300. Bitcoin then rose sharply to break this resistance, trading at $9,600 on 28th October 2019, and between then and 8th November 2019, it found a support point at $9,200. This support point was broken, as was the round number of $8000. The price continued to move lower, and at the time of writing, the low for 2019 has been made earlier in the week just above $6,500.

In 2018, after Bitcoin had recorded its all-time high, the Chinese government began a massive crackdown on cryptocurrency exchanges, causing speculations of price fall in the media, and in return, forcing buyers to leave the market. This affected the price massively to take its value down to as low as almost $3,000.

Before the end of 2019, the price of Bitcoin will fall even lower, beyond $6,500, due to another crackdown having been launched by China, unless a stronger determinant like the bullish speculation surrounding the Bitcoin 2020 halving event overpowers this fear.

The price chart signifies a bullish move is likely in the first quarter of 2020, after support is found somewhere between $5,000 and $6,000.The blue line represents market capitalization while the green line represents price.

Based on the previous price data, the Bitcoin price is on the verge of staging its first bull run before the event in 2020, and this may possibly start sometime in late December 2019 or early January 2020. The Bitcoin price should slowly rise back into the $10,000 price zone by March 2020 and possibly trade around $13,000 by May 2020 as the price surges during this period should tend to be staged gradually.

 Bitcoin Price Prediction 2020

The Bitcoin price surged from $12 in November 2012 to $110 on 8 July 2013. The impact of the Bitcoin halving was effective right after the event, sending the price to rise by 1,000% in just seven months. Similarly, the Bitcoin price after the second halving event recorded a considerable growth from $650 during the event to about $772 in December 2016, which was 5 months after the event, and $907 in January 2017, which was 6 months after the event.

It is worth noting that the percentage change in price during and after the event may not necessarily be the same as the previous percentage change depending on several factors as well as the current value of the asset. The 2012 event led to a massive change in price compared to the 2016 event, and the 2020 event may possibly cause a lesser change in price compared to the 2016 event. I predict that the Bitcoin price may not overtake its all time high in 2020. The price may surge but at a slower pace like the price movement few months after the event in 2016. 

By December 2020, the Bitcoin price may trade as high as $17,000 and as low as $15,000 when we consider the price movement after the first six month of the event. In 2021, Bitcoin will possibly trade above its all-time high and push close to $30,000.

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➤China Capital outflows rose modestly in September Standard Chartered