Emily Walker
An analyst from a financial research firm anticipates that Bitcoin’s price will continue to rise until the end of the year, buoyed by positive technical indicators and growing market demand.
In a recent CNBC interview on YouTube, Fundstrat’s Tom Lee discussed Bitcoin’s ongoing strength, particularly in light of the recent election victory of US President Donald Trump.
Currently, Bitcoin is trading around $91,000, and Lee predicts that it will stabilize around the $90,000 mark, supported by strong technical conditions that suggest a continued upward trajectory.
Technical analysts assert that Bitcoin is in its fifth Elliot Wave cycle, forecasting a rise in value to between $130,000 and $145,000 by the year’s end. Lee believes that with an uptick in market volume and favorable monetary policies from the Federal Reserve, reaching this target is plausible.
Reasons Behind Bitcoin’s Ongoing Rally
During his interview, Lee attributed Bitcoin’s price increase to both rising market interest and strong technical signals. He mentioned that Bitcoin is currently in a consolidation stage, likely remaining around the $90,000 level.
He noted Bitcoin’s price movements reflect the overall performance of other risk assets, but it stands out due to its stability and resilience. Bitcoin thrives during times of risk appetite, and current political and economic situations are favorable for its growth.
With major indices like the S&P 500 and NASDAQ retracing to strong support levels, a similar pattern for Bitcoin indicates it is positioned for potential growth.
Lee also connected Bitcoin’s performance to broader market trends, often referencing the “Trump trade.” He contended that Trump’s election significantly contributed to the asset’s rising prices. Additionally, he mentioned the establishment of the D.O.G.E. initiative, which aims to enhance government efficiency and deregulation.
Bitcoin as a Strategic Reserve Asset
Lee highlighted that discussions surrounding Bitcoin as a strategic asset are contributing to its growing market volumes and elevated prices. As a potential hedge against macroeconomic challenges, such as inflation, Bitcoin is gaining traction. He noted that ongoing debates about US monetary policies, including possible interest rate cuts, are favorable for increasing Bitcoin’s value.
Additionally, speculation regarding the next Treasury Secretary could also impact Bitcoin’s price. Howard Lutnick from Cantor Fitzgerald is among the frontrunners and has been a proponent of legitimizing Bitcoin.
Growing Retail and Institutional Interest Boosting Bitcoin’s Value
Lee further noted that there is increasing participation from both retail and institutional investors, which is propelling Bitcoin’s value higher. Data from CryptoQuant indicates that the Coinbase premium index increased when the current rally began, signaling rising interest from US retail investors. However, these figures have recently dropped, suggesting a slowdown in retail activity.
Coosh Alemzadeh observed that Bitcoin’s current price dynamics and technical patterns point to significant growth potential. He noted that Bitcoin is at its fifth wave in the Elliot Wave cycle, indicating it may be nearing a price peak. According to his forecast, BTC could reach $145,000 by the end of the year.
Image sourced from SCMP; chart data from TradingView.