An analyst from a financial research firm expects Bitcoin to continue its price rise through the end of the year as it relies 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 continued dominance in the context of the convincing election of incoming US President Donald Trump.
Bitcoin’s price currently trading at the $91,000 level, Lee expects the major digital asset to consolidate around the $90,000 level, with technicals ensuring it continues a sustainable run.
According to technical analysts, Bitcoin is in its fifth Elliot Wave cycle, indicating an expected rise, with a price of $130,000 to $145,000 by the end of the year. According to Lee, Bitcoin can easily target this price with increasing market volume and friendlier monetary policy from the Federal Reserve.
Lee explains why Bitcoin’s rally continues
In a CNBC interview, Lee explained that increasing market demand and solid technical indicators support Bitcoin’s recent price rise. He noted that Bitcoin is now in a consolidation phase and will likely remain at the $90,000 level.
According to him, Bitcoin’s price is in line with the price action of other risky assets. But Bitcoin is different because it is more stable and shows resilience. According to Lee, Bitcoin thrives in a risk-taking environment, and the political and economic landscape favors digital assets.
Major indices such as the S&P 500 and NASDAQ have fallen to support levels, providing a solid foundation for future growth. The same trend is happening with Bitcoin, indicating that the asset is poised for another surge.
Lee also linked Bitcoin’s price performance to other market trends, including a “Trump trade.” He argued that Trump’s election was crucial in increasing the price of the asset. Then there is the recent confirmation of the establishment of the DOGE, which aimed to promote efficiency and deregulation within government.
BTC as a strategic reserve asset
Lee pointed out that the proposals to make Bitcoin a strategic asset will also help increase its market volume and price. Bitcoin can serve as a hedge against macroeconomic uncertainties, including inflation. He added that current debates over the direction of US monetary policy, such as lowering interest rates, are boosting the price of crypto.
Meanwhile, there is ongoing discussion about who the winner will be next Minister of Financewhich can also affect prices. Cantor Fitzgerald’s Howard Lutnick is one of the top names being considered and advocating for the legitimacy of Bitcoin.
Increasing retail and institutional support, driving the price of Bitcoin higher
Lee also suggested increasing support among retail and institutional investors, which would increase Bitcoin’s price. Based on data from CryptoQuant, Coinbase’s premium index rose at the start of the rally, indicating increasing interest from US retail investors. However, these figures have fallen recently, due to a slowdown in retail activity.
For Coosh Alemzadeh, Bitcoin’s current price chart and technical data suggest future growth. He added that Bitcoin is in the fifth wave of the Elliot Wave cycle, which is at the peak of a price increase. Based on his projection, the price of BTC could reach $145,000 by the end of the year.
Featured image of SCMP, chart from TradingView