A financial research company analyst expects Bitcoin to proceed its price surge until year-end because it rides on bullish technical indicators and increasing market demand.
In a CNBC interview uploaded via YouTube, Fundstrat’s Tom Lee shared his thoughts on Bitcoin’s continuing dominance within the context of incoming US President Donald Trump’s convincing election.
Bitcoin’s price is currently trading on the $91k level, and Lee expects that the highest digital asset will consolidate near the $90,000 level, with its technicals setting it up for a sustained run.
Based on technical analysts, Bitcoin is on its fifth Elliot Wave cycle, indicating an expected rise, with a price of $130k to $145k by year-end. Based on Lee, Bitcoin can easily goal this price with increasing market volume and a friendlier monetary policy from the Federal Reserve.
Lee Explains Why Bitcoin’s Rally Continues
In a CNBC interview, Lee explained that increasing market demand and solid technical indicators support Bitcoin’s recent price surge. He noted that Bitcoin is now in a consolidation phase and can likely stay on the $90,000 level.
Bitcoin’s price, he says, aligns with the worth motion of other risk assets. But Bitcoin is different since it’s more stable and shows resilience. Based on Lee, Bitcoin thrives in a risk-taking environment, and the political and economic landscape favors the digital asset.
Major indices just like the S&P 500 and NASDAQ have dipped on support levels, which offers a solid foundation for future growth. The identical trend is going on for Bitcoin, suggesting that the asset is primed for one more surge.
Lee also linked Bitcoin’s price performance with other market trends, including a “Trump trade.” He argued that Trump’s election was key in boosting the asset’s price. Then, there’s the recent confirmation of creating the D.O.G.E., which aimed to advertise efficiency and deregulation in the federal government.
BTC As A Strategic Reserve Asset
Lee identified that the proposals to make Bitcoin a strategic asset are also helping boost its market volume and price. Bitcoin can function a hedge against macroeconomic uncertainties, including inflation. He added that the present debates on the direction of US monetary policies, like cutting rates of interest, are helping the crypto’s price.
Meanwhile, there’s an ongoing discussions on who can be the next Treasury secretary, which can even influence prices. Howard Lutnick of Cantor Fitzgerald is one in every of the leading names considered, advocating for Bitcoin’s legitimacy.
Increasing Retail And Institutional Support Pushing Bitcoin’s Price
Lee also suggested increasing support amongst retail and institutional investors, driving Bitcoin’s price. Based on data by CryptoQuant, Coinbase’s premium index increased on the rally’s start, suggesting surging interest from US retail investors. Nonetheless, these numbers have dipped recently, reflecting a slowdown in retail motion.
For Coosh Alemzadeh, Bitcoin’s current price chart and technicals suggest future growth. He added that Bitcoin is at its fifth wave of the Elliot Wave cycle, which is at the height of a price surge. Based on his projection, BTC’s price can reach $145k by year-end.
Featured image from SCMP, chart from TradingView