An analyst from a financial research firm believes that Bitcoin will sustain its price climbing momentum through the end of the year, bolstered by bullish technical signals and rising market interest.
During a CNBC interview available on YouTube, Fundstrat’s Tom Lee discussed Bitcoin’s ongoing strength in light of the recent election of US President Donald Trump, which he views as a significant influence.
Currently, Bitcoin is trading around $91,000, and Lee anticipates that the leading digital currency will stabilize near the $90,000 mark, thanks to its technical setup indicating a potential continued ascent.
Technical analysts believe Bitcoin is currently in its fifth Elliott Wave cycle, suggesting an upward trajectory, with projections estimating a price range between $130,000 and $145,000 by the year-end. Lee asserts that Bitcoin can readily achieve these targets, spurred by rising market volume and a more accommodating stance from the Federal Reserve.
Understanding the Continuing Bitcoin Rally
In the CNBC segment, Lee elaborated on how heightened market demand and reliable technical indicators are propelling Bitcoin’s recent price rise. He noted that Bitcoin is undergoing a consolidation period and is likely to maintain the $90,000 level.
He highlighted that Bitcoin’s price trajectory aligns with other risk assets, although it exhibits greater stability and resilience. Lee contends that Bitcoin flourishes in risk-seeking environments and believes the current political and economic landscape is advantageous for the cryptocurrency.
Major indices, such as the S&P 500 and NASDAQ, have pulled back to support levels, which provide a strong foundation for growth prospects. Bitcoin is experiencing a similar trend, indicating that it may be positioned for another upward movement.
Lee also connected Bitcoin’s price dynamics to wider market movements, notably referencing a “Trump trade.” He claimed that Trump’s election has significantly influenced the asset’s value. Furthermore, he noted the recent establishment of the D.O.G.E., designed to enhance efficiency and deregulation within the government.
Bitcoin as a Strategic Reserve Asset
Lee pointed out that discussions regarding defining Bitcoin as a strategic asset are contributing to its growing market volume and price. He argued that Bitcoin acts as a hedge against macroeconomic risks, including inflation. Moreover, he suggested that the ongoing debates surrounding US monetary policy—such as the possibility of interest rate cuts—are also influencing the cryptocurrency’s price.
In parallel, ongoing conversations about who will become the next Treasury secretary could also affect price movements. One prominent name mentioned is Howard Lutnick of Cantor Fitzgerald, who has expressed support for Bitcoin’s legitimacy.
Growing Retail and Institutional Support Fueling Bitcoin’s Price
Lee also indicated that increasing backing from both retail and institutional investors is propelling Bitcoin’s price upward. Data from CryptoQuant shows that Coinbase’s premium index rose at the onset of the rally, indicating burgeoning interest among US retail investors. However, there has been a recent decline in these figures, suggesting a slowdown in retail engagement.
Coosh Alemzadeh noted that Bitcoin’s current price chart and technical indicators point towards likely future growth. He observed that Bitcoin is at the fifth wave of its Elliott Wave cycle, which coincides with a price surge peak. His analysis suggests that Bitcoin’s price could hit $145,000 by the end of the year.
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