- Bitcoin (BTC) back to read, will sellers flow and force liquidation?
- Analysts are upbeat, expect Bitcoin (BTC) to close higher by end year
Thomas Lee of Fundstrat is quite conservative with his projection, placing $10,000 at the end of the year. As more analysts are upbeat, a contrarian move may see Bitcoin (BTC) bears flow, driving prices to $4,800 or lower in a retest.
Bitcoin Price Analysis
It doesn’t take much to conclude that there is a revival in Bitcoin and crypto. After a frigid and an extended Bitcoin winter that squashed enthusiasm shaving value off crypto assets, Bitcoin and digital asset aficionados have multiple reasons to be jubilant.
Well, it is not only because of prospects and talks of parabolic rises and what nots, but it’s more about the shifting view in Wall Street and traditional companies. Although last year’s drop did drain $500 billion off the crypto market, investors are ready to take chances with Bitcoin.
That means investment in an asset whose market is getting deeper by the day meaning volatility is tapering. Thomas Lee of Fundstrat Global Advisors says “Risk appetite is positive for Bitcoin” adding that “If the S&P 500 made a 2.5 standard deviation move [as it has done year-to-date] and investors are looking for vol [volatility] that’s building a base case for Bitcoin.”
Because of this, the staunch Bitcoin bulls believe that the coin has more room for upsides and would easily test $10k by the end of the year. Add this to central banks changing their position and even readying for negative rates, it’s only a matter of time before the rosy house of cards propped by “free” money oozing from accommodative monetary policy collapse fueling the next wave of higher highs.
Price wise and Bitcoin (BTC) is back to red, consolidating within a close $500 range with caps at $5,500 and support at $5,000. Although we are net bullish expecting higher highs, it is imperative that accompanying momentum is high.
As a result, the only move that would signal trend continuation is a wide-ranging bull-bar closing above $5,500, breaking above the consolidation and confirming buyers of Apr-2.
While we are upbeat, we cannot also discount prices crumbling below the 38.2 percent Fibonacci retracement line at around $4,950—streams from BitFinex, to approximately $4,500 or the 78.6 Fibonacci level of Apr 2-3 high low in a retest.
As mentioned above, buyers may be in charge, but for trend continuation, then we must see a rally past $5,500. That means a complete reversal of Apr-11 losses. Accompanying this move should be high volumes exceeding 19k. Similarly, any drop below $4,950 will confirm bears of Apr-11, triggering sell-off towards $4,500.
Chart courtesy of Trading View