Tom Lee, Co-founder of Fundstrat, spoke about Bitcoin’s [BTC] recent hike over $8000, during an interview with CNBC Fast Money. Tom Lee pointed out the possible reasons that were acting as catalysts for this surge and also spoke about the future position of cryptocurrencies.
Lee stated that the cryptocurrency was seeing a “steady rise” over the past few months, adding that it started to look “more parabolic.” He further stated that there were several events that occurred recently, thereby fueling Bitcoin’s upward move. One among them was the Consensus conference taking place in New York. On this, the Co-founder stated that the event brought together the entire cryptoverse in a “much more higher quality form,” while also highlighting the fact that scams and ICOs have seen a significant decrease.
This was followed by Lee stating that one of the “notable” catalysts was the “tension between the US and China.” He stated that “it’s really sort of sparked this potential risk of some sort of systematic meltdown and crypto is correlated.”
Further, Tom Lee spoke about what would happen next with Bitcoin. He stated that crypto-winter was practically over and that the largest-cryptocurrency was “technically above its 200 days.” He also stated that there have been several positive developments, including announcements made
Lee also stated that the halving, which is set to occur next year, was also one of the reasons contributing to the rise. He pointed out that this phenomenon had occurred previously, where Bitcoin’s price starts to rally about 12 months before the halving season. He went on to state,” […] then of course in Asia, there’s been a couple of events that has affected the supply because there was a hack on an exchange in Asia and for the past week, there have been restrictions on either withdrawing or adding funds to anyone on the exchange. That’s again affected supply, this supply and demand are obviously affecting Bitcoin […]. “
Additionally, he stated that Bitcoin closing the gap to the $10,000 level was driving positive sentiments among investors. Additionally, Lee was asked about his opinion on Bitcoin playing the role of a major safe haven in the future, if central banks had a possible meltdown. He stated,“[…] I think its going to be an asset that will look attractive in the event of a tail risk. A tail risk event of either the loss of state and central banks, that’s the original reason cryptocurrencies were developed. So, you know and that sort of spectrum deep risk, I think Bitcoin is the epic digital gold […]”
What’s Next For Bitcoin’s Price? Analyst Who Predicted 35% Crash Says This
Earlier this year, in late-September, prominent Bitcoin analyst Filb Filb posted this chart below, showing that he expects for BTC to jump by dozens of percent to near $10,000, then collapse by 35% to the low-$6,000s to interact with the “miners bottom range.”
While some laughed this off as pure bearish sentiment at the time, Filb Filb’s prediction was proven to be nearly 100% accurate, with Bitcoin surging past $10,000 in a temporary vertical relief rally, then crashing the mid-$6,000s just earlier this month.
He managed to predict Bitcoin’s trajectory months in advance, something quite difficult for any trader due this market’s volatility.
The same analyst is back again, issuing his latest forecast for the leading cryptocurrency.
Related Reading: Ethereum’s Price is “Convincingly Bearish”: Here’s What Comes After 20% Week
Bitcoin to Hit $9,555 Soon
Filb Filb recently noted that Bitcoin is preparing to make a raid on the previous resistance level of $9,555, noting that this is where the price of the cryptocurrency topped in October and early-November in the wake of the now-infamous 40% “China pump.”
BTC reaching this level, which would satisfy textbook market trends of assets visiting support and resistance levels multiple times before establishing a direction, would require it to rally by 7% from the current price of $8,850.
Not the Only Bull
Filb Filb isn’t the only prominent analyst who is bullish on Bitcoin.
Aside from Filb Filb, there are few traders that have been as accurate on
Related Reading: Research Firm: 3 Use Cases Could Send Bitcoin To $1 Trillion
Dave recently issued his next prediction, saying that BTC is preparing to break higher than it already has, drawing attention to the below chart which shows BTC is trading in a clear uptrend. Per his analysis, the cryptocurrency’s price will likely surge another 32 percent to $11,500 by the middle of February—just four weeks away.
Backing this prediction, Dave looked to a confluence of factors:
- Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls.
- BTC rallying to $11,500 would satisfy a historical chart pattern.
- The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull.
Related Reading: Bitcoin Price Signal That Preceded 4,000% Rally Forms Again, and It’s Huge for BTC
Bitcoin Price Analysis: BTC/USD failure to break $9,000 resistance could open the Pandora box
- Bitcoin Friday’s recovery stalls at $9,000, allowing for correction.
- Bitcoin buyers must defend the short term support at $8,800 in order to avoid further dips to $8,500.
Following an event-filled week, Bitcoin alongside other digital assets is in a correction. On Friday, Bitcoin resurfaced above $8,900, further cementing the bulls’ position on the market. They pulled the price higher, where Bitcoin came into contact with the $9,000 psychological level. However, the momentum lost steam allowing the bears to make an entrance pushing Bitcoin below the short term support at $8,900.
At the time of writing,
The long term picture hints hard times ahead for Bitcoin, especially with the formation of a rising wedge pattern. If the pattern’s support fails to hold, energized reversal could push Bitcoin back into the $7,000 range. For now, the best the buyers can do is to sustain the price above $8,800 and ensure they don’t lose focus of the resistance at $9,000.
BTC/USD 4-hour chart
Bitcoin volume, volatility finally find momentum after December lows
Bitcoin is remembering to be volatile again!
The real trading volume for Bitcoin is back up to its November 2019 levels after its price broke out of the lows seen during the holiday season. Thanks, in good measure, to the volatile few weeks the cryptocurrency is having.
According to the latest report by Arcane Research, Bitcoin, earlier this week, recorded its highest 7-day average trading volume for the past 3 months. The average trading volume for the past week was in the range of $800 million – $900 million, a significant high considering the fact that December’s trading volume went below $500 million due to Bitcoin’s relatively stable price.
Source: Bitcoin Real Volume, Arcane Research
On 14 January, Tuesday, as Bitcoin began the day with a 4 percent pump in under two hours, breaking $8,500 for the first time since mid-November, the real trading volume notched an unprecedented $1.7 billion.
Here, it should be noted that the report measures real trading volume, according to Bitwise real 10. In March 2019, Bitwise Asset Management had released a report where it categorized 10 exchanges that reported “real volume.” The exchanges were Binance, Coinbase, Gemini, Poloniex, Bittrex, Bitstamp,
When volume spurts, volatility is not far behind.
Source: Bitcoin 30-day Volatility, Arcane Research
Bitcoin’s 30-day volatility is back up to November levels, according to the report. Now hovering at around 3.5 percent, the volatility has been steadily increasing since the beginning of the month.
After Bitcoin’s massive 10 percent single-day gain on 19 December, a surge that took it from $6,600 to over $7,200, the volatility had been in a slump. During the Christmas-New Year period, Bitcoin’s price was locked in and stayed around $7,500, pulling the volatility to as low as 2 percent.
Both volume and volatility have now turned around, making massive gains as the price continues to test the $9,000 ceiling. The Bitcoin market is, however, fickle and sensitive to various elements. For instance, Bitcoin’s biggest daily gain of 2019 came a day after it entered its Death Cross, a trading term meant to signal a bearish period. Hence, this increase in volatility and volume should be taken with a pinch of salt.
Arcane is not quite pessimistic. The report stated that “this time is different,” adding that the increasing volume and volatility are collectively an “upwards trend.”