- Fundstrat’s Tom Lee reckons “People are too bearish.
- “The institutional herd is starting to enter this market,” Brian Kelly.
- Bitcoin price is still paralyzed in spite of the slight recovery above $6,400.
Bitcoin appears to be throwing the kicks of a dying horse in a market that is nether bearish nor bullish. However, the opposite of this mundane sideways movement in price, is the fact that Bitcoin bulls, and particularly Tom Lee still believe that the largest crypto will correction higher and even beat the all-time high record that almost hit $20,000 in December 2017. Since the beginning of the year, Lee has been extremely bullish on Bitcoin. While the bear market refuses to give way for the bulls, Tom Lee still believes that Bitcoin will hit $25,000.
Recently, Lee shared his opinions with ‘BlockchainChick, a cryptocurrency enthusiast. He said used his experience in the financial markets to drive his point home on whether Bitcoincan correction above $20,000 and hit $25,000 by the end of this year. He stated:
“People are too bearish… What happens is people get bearish because it makes sense. You know the market conditions have been terrible and we are under our 200-day moving average.” He added. “We [at Fundstrat] just published a report this week that pointed out to our clients that when Bitcoin is under its 200-day, it only goes up 50% of the time in the next six months. But when it’s above its 200-day, it is up 80% of the time [in the next six months], so the trend implied by the 200-day is obviously very important.”
Elsewhere, the CEO of BKCM and a commentator at CNBC, Brian Kelly like Tom Lee has been very bullish on the cryptocurrency space. He supports blockchain as well as the digital market and he recently said that the market is gearing up for a rally. He notes that the entrance of Fidelity Digital Asset Services (FDAS) is a game changer in the industry. Kelly stated on CNBC that:
“I can tell you from the conversations that we’ve had, for our crypto hedge fund, that the institutional herd is starting to enter this market.”
"Soon. I think very soon. It wouldn’t surprise me to see a lot of those companies have something working in the background by Q1 of 2019. I mean if you’re looking at this, there are a couple things you need to think of. Fidelity is in this space. Also, remember that startups like Robinhood launched a crypto app and got a million users in four days. So if you are at Schwab or you’re at E*Trade, then you may start to look at that and say, “Where are the customers?” And they’re in crypto, so you gotta offer that product."
Bitcoin price technical picture
Bitcoin price has recovered slightly and reclaimed the support at $6,400. However, the upside has been capped at $6,425. The short-term 15-minutes chart shows the price is ready for an upswing in the meantime but the longer term 4-hour chart indicates that the buyers will continue to suffer below the trendline resistance that began in May. BTC/USD is currently trading at $6,409 and appears to have found a support at $6,405. The price will encounter resistance at $6,428 (100SMA) while a break above $6,430 will open the door for gains towards $6,500.
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