Financial analyst Tom Lee from Fundstrat predicts that Bitcoin will continue to surge in price until the end of the year, driven by bullish technical indicators and increasing market demand. In an interview with CNBC, Lee highlighted Bitcoin’s dominance in the context of the incoming US President Donald Trump’s election.
Currently trading at around $91,000, Lee expects Bitcoin to consolidate near the $90,000 level, with technical indicators pointing towards a sustained run. Technical analysts suggest that Bitcoin is on its fifth Elliot Wave cycle, indicating a potential rise in price to $130,000 to $145,000 by the end of the year. Lee believes that Bitcoin can easily reach this target with the support of increasing market volume and a more favorable monetary policy from the Federal Reserve.
Lee explained that the recent rally in Bitcoin’s price is supported by solid technical indicators and growing market demand. He noted that Bitcoin is currently in a consolidation phase and is likely to remain around the $90,000 level. Despite aligning with the price action of other risk assets, Bitcoin stands out for its stability and resilience. Lee emphasized that Bitcoin thrives in a risk-taking environment and benefits from the current political and economic landscape.
Major indices like the S&P 500 and NASDAQ have experienced dips at support levels, providing a strong foundation for future growth. Similar trends are observed in Bitcoin, suggesting that the digital asset is poised for another surge. Lee also attributed Bitcoin’s price performance to broader market trends, including the “Trump trade” and the establishment of the D.O.G.E. initiative aimed at promoting efficiency and deregulation in the government.
Lee highlighted the proposals to designate Bitcoin as a strategic reserve asset, which have contributed to increased market volume and price. Bitcoin is seen as a hedge against macroeconomic uncertainties such as inflation. Discussions surrounding the direction of US monetary policies, including potential interest rate cuts, have also influenced Bitcoin’s price. The speculation on the next Treasury secretary, with names like Howard Lutnick advocating for Bitcoin’s legitimacy, further adds to the price dynamics.
The rising support from both retail and institutional investors is driving Bitcoin’s price. Data from CryptoQuant shows an increase in Coinbase’s premium index at the beginning of the rally, indicating heightened interest from US retail investors. However, these numbers have since decreased, signaling a slowdown in retail activity. Analyst Coosh Alemzadeh believes that Bitcoin’s current price chart and technical indicators point towards future growth, with the digital asset potentially reaching $145,000 by the end of the year.
In conclusion, Bitcoin’s price surge is expected to continue until year-end, supported by bullish technical indicators, increasing market demand, and favorable market conditions. The digital asset’s resilience and stability in a risk-taking environment, coupled with proposals to designate Bitcoin as a strategic reserve asset, further contribute to its upward trajectory. Retail and institutional support, along with broader market trends, are driving Bitcoin’s price towards new highs.
