Capital.com Research TeamInteroperable with both Bitcoin and Ethereum, Qtum is a smart contract blockchain platform that has been gaining popularity among investors lately.
What Is Qtum?
Qtum is a public blockchain platform that facilitates the creation and deployment of smart contracts and decentralised applications (DApps). Qtum uses a proof-of-stake system for consensus which they state offers “significant performance advantages” over proof-of-work systems.
Qtum has some unique features such as its Decentralized Governance Protocol, which allows its blockchain settings to be modified, like the block size, for example, through the use of smart contracts without needing a hard fork.
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Qtum’s x86 Virtual Machine supports all the major programming languages, including Rust, Python, C, and C++, to enable the mainstream adoption of smart contract development.
Qtum’s blockchain uses the same UTXO (Unspent Transaction Output) model as Bitcoin, as it is proven to be secure and enables high traceability of transactions. Qtum also created an Account Abstraction Layer (AAL), which makes the Ethereum Virtual Machine (EVM) compatible with its UTXO blockchain. Qtum is therefore interoperable with both Ethereum and Bitcoin.
Qtum’s Historic Price Performance
Qtum recorded its all-time high price of about $83 back in January 2018 during the peak of the crypto bull market mania, just like many other cryptocurrencies. The price of Qtum has retraced heavily since then, sitting now at about $1.63, which is 98 per cent lower than its high.
This figure acts as an important reminder of the risk involved when investing in cryptocurrencies. Investors should always only put in what they can afford to lose and use protective measures such as a stop-loss to limit the downside risk.
On the way to reaching its record high, Qtum’s price increased more than 1,000 per cent, showing the potential for highly lucrative returns when investing in cryptocurrencies.
Considering that Qtum has lost so much of its value since that all-time high, you may be wondering if now is a good time to buy it on the cheap. To help you with your analysis, let us take a look at some Qtum price forecasts for 2019 and 2020.
Realistic Qtum Price Prediction 2019
Qtum is currently testing a major area of support for the fourth time, which can be seen marked in grey on the chart above.
Whether this support area holds again or breaks is crucial in predicting where Qtum’s price could be at the end of 2019. Therefore, I will provide both a bullish and bearish Qtum price prediction for this year, dependent on how its price acts at this support level.
Bearish Qtum Price Prediction 2019
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Each time an area of price support or resistance is tested, the more likely it is to fail. Therefore, as Qtum is testing a major area of support for the fourth time, we should definitely be open-minded to the fact that we could see a big move to the downside occur.
If Qtum does break below this area of support, without quickly recovering afterwards (known as a bear trap), there are no identifiable areas of historic price support on the chart. However, as round numbers are often known to act as areas of support, we can assume that $1 would be the most likely next level of support.
Therefore, a bearish Qtum price prediction for 2019 would be a move to $1 if support does not hold; this would be a decline of more than 30 per cent.
Note: Remember that when investing in cryptos, you can also make money by betting on prices to go, known as going ‘short.’ So try to be unbiased, and see the potential for profitable trades whether Qtum goes up or down from here.
Bullish Qtum Price Prediction 2019
If Qtum can bounce here from support, there are some clearly identifiable areas of resistance that we can base our prediction on.
First, there is an area of consolidation where the price previously found support multiple times, which would likely become resistance if the price can move higher from here. This area is also marked in grey on the chart at about $2.1.
Secondly, there is the 20-day, 50-day, and 100-day simple moving averages clustered around the $2 area, which could also act as resistance. Therefore, a bullish Qtum coin price prediction for 2019 would be a move up to $2, which would be a more than 20 per cent increase from where the price currently is.
Qtum Realistic Price Prediction 2020
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If we take a longer-term look, we could argue that Qtum is currently in the process of building a large rounded bottom pattern. However, this pattern would be invalidated if Qtum breaks significantly below the current area of support.
If this rounded bottom pattern does play out, a significant area of prior resistance (marked in grey on the chart) would be an area we could see the price of Qtum rise to. Therefore, my bullish Qtum price prediction for 2020 would be a rise to $6 at some point during the year, which would be an increase of more than 250 per cent from its current price.
Qtum News & Developments
There is no doubt that hype around the project and related Qtum coin news can influence how its price moves. Therefore, it is worth keeping an eye out for the latest development via Qtum’s social channels such as Reddit, Twitter, Telegram and GitHub, as well as at other crypto media outlets.
Also, look out for developments that affect the industry as a whole, such as government bans on cryptocurrencies or new supportive regulations.. You can use this information in combination with the Qtum forecast above to help you make informed trading decisions.
