An analyst at 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 growing 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 compelling election of incoming US President Donald Trump.
<a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”noopener nofollow”>The price of bitcoin It is currently trading at the $91,000 level, and Lee expects the leading digital asset to consolidate near the $90,000 level, with its technicals setting it up for a sustained 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 reach this price with increasing market volume and friendlier monetary policy by the Federal Reserve.
Lee explains why bitcoin's rally continues
In an interview with CNBC, Lee explained that growing market demand and <a target="_blank" href="https://finance.yahoo.com/news/high-bitcoin-prediction-markets-191440052.html” target=”_blank” rel=”noopener nofollow”>solid technical indicators support the recent bitcoin price surge. He noted that bitcoin is now in a consolidation phase and will likely hold at the $90,000 level.
The price of bitcoin, he claims, aligns with the price action of other risk 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 the digital asset.
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 occurring with bitcoin, suggesting that the asset is primed for another rise.
Lee also linked bitcoin's price performance to other market trends, including a “Trump flip.” He argued that Trump's election was key to boosting the price of the asset. Then, there is the recent confirmation of the establishment of the DOGE, whose objective was to promote efficiency and deregulation in government.
btc as a strategic reserve asset
Lee noted that proposals to make bitcoin a strategic asset are also helping to boost its volume and market price. bitcoin can serve as a hedge against macroeconomic uncertainties, including inflation. He added that current debates over the direction of US monetary policies, such as cutting interest rates, are helping the price of the cryptocurrency.
Meanwhile, there are ongoing discussions about who will be the next treasury secretarywhich can also influence prices. Cantor Fitzgerald's Howard Lutnick is one of the top names being considered and defends the legitimacy of bitcoin.
Rising Retail and Institutional Support Boosts bitcoin Price
Lee also suggested increasing support among retail and institutional investors, boosting the price of bitcoin. According to data from CryptoQuant, the Coinbase premium index rose at the beginning of the rally, suggesting growing interest from US retail investors. However, these figures have declined recently, reflecting 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 its fifth wave of the Elliot Wave cycle, which is at the peak of the price increase. According to his projection, the price of btc can reach $145,000 by the end of the year.
Featured image of SCMP, TradingView chart
