A financial research company analyst expects Bitcoin to continue its price surge until year-end as 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 in the context of incoming US President Donald Trump’s convincing election.
Bitcoin’s price is currently trading at the $91k level, and Lee expects that the top digital asset will consolidate near the $90,000 level, with its technicals setting it up for a sustained run.
According to technical analysts, Bitcoin is on its fifth Elliot Wave cycle, indicating an expected rise, with a price of $130k to $145k by year-end. According to Lee, Bitcoin can easily target this price with increasing market volume and a friendlier monetary policy from the Federal Reserve.
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 will likely stay at the $90,000 level.
Bitcoin’s price, he says, aligns with the price action of other risk assets. But Bitcoin is different because it’s more stable and shows resilience. According to Lee, Bitcoin thrives in a risk-taking environment, and the political and economic landscape favors the digital asset.
Major indices like the S&P 500 and NASDAQ have dipped on support levels, which offers a solid foundation for future growth. The same trend is happening for Bitcoin, suggesting that the asset is primed for another 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 establishing the D.O.G.E., which aimed to promote efficiency and deregulation in the government.
Lee pointed out that the proposals to make Bitcoin a strategic asset are also helping boost its market volume and price. Bitcoin can serve as a hedge against macroeconomic uncertainties, including inflation. He added that the current debates on the direction of US monetary policies, like cutting interest rates, are helping the crypto’s price.
Meanwhile, there’s an ongoing discussions on who will be the next Treasury secretary, which can also influence prices. Howard Lutnick of Cantor Fitzgerald is one of the leading names considered, advocating for Bitcoin’s legitimacy.
Lee also suggested increasing support among retail and institutional investors, driving Bitcoin’s price. Based on data by CryptoQuant, Coinbase’s premium index increased at the rally’s start, suggesting surging interest from US retail investors. However, these numbers have dipped recently, reflecting a slowdown in retail action.
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 peak of a price surge. Based on his projection, BTC’s price can reach $145k by year-end.
Featured image from SCMP, chart from TradingView
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