- The charts are “pretty scary for folks”, Tom Lee says on CNBC Futures Now.
- The MACD is pointing upwards while the RSI has recovered from oversold levels.
Many industry analysts and experts are still bullish that Bitcoin and other digital assets will surge the prices this year. Frudstrat’s Tom Lee and John MacAfee still maintain their bullish predictions although Bitcoin price has plummeted from trading above $8,000 and is currently testing the short-term support at $7,330. The king of cryptocurrencies is battling to shake off the extended bear pressure, although it is down 2% on Thursday.
Tom Lee, while on CNBC Futures Now maintained that Bitcoin will hit $25,000 by the end of 2018. Lee says that the downslide is a “typical crypto volatility” and pointed out three reasons why his predictions are still valid. Lee also said that although the charts are “pretty scary for folks” the “notion of blockchain as a way to solve trust in the digital world has gained a lot of traction”. He continued by saying that Bitcoin is trading at cost of production which is around $8,000 and that he is going to be watching the big investors noting that their contribution is a catalyst for price gains. While expounding on the idea of institutional investors, Lee said:
“I think institutional investors have gained a lot of interest, and they haven’t really come into crypto yet because there is still some regulatory uncertainty, but that sort of ultimate allocation into crypto as an asset class is going to be a powerful reason why bitcoin rallies.”
There seems to be weak recovery momentum building on the charts, besides the MACD is pointing upwards, but it is still at the -66 mark. The RSI has recovered from the oversold region below 30. BTC/USD is facing resistance $7,400 while it is trading at $7,360. The moving averages on the 15’ chart signal that the buyers have some effort to force an upside correction above $7,400. If the short-term support at $7,330 fails, further declines will be halted above $7,300.
BTC/USD 15’ chart
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