Fundstrat Analyst: Bitcoin Price Could Soon Hit $11,000
On Thursday, Bitcoin continued its precipitous rally higher, extending the gains it has made over the past few weeks. At today’s peak, the price of the cryptocurrency hit $9,850, surging as buyers continue to step in.
As of the time of writing this, the
cryptocurrency is only a relatively mild 2% higher in the past 24 hours, though analysts are saying that the latest legs higher in Bitcoin is a precursor to an even larger surge slated to take BTC back into the five digits.
Rob Sluymer — an analyst at New York-based market research firm Fundstrat Global Advisors — recently said in a note shared by Bloomberg that Bitcoin is likely to head even higher in the coming weeks.
More specifically, he said that BTC is likely to soon trade in a range of $10,000 to $11,000 — 2% and 12.2% higher than the current price of $9,800, respectively.
As to what will push BTC to the aforementioned prices, Slyumer cited the fact that Bitcoin often retraces 50% to 62% of large moves, referencing his sentiment that BTC is attempting to retrace the bear trend that brought the asset from $14,000 to $6,400 in the second half of 2019. The analyst added:
Bitcoin appears to be in a textbook re-acceleration. [The pullback from $11,000 is likely to be shallow], then followed by resuming its longer-term uptrend into year-end.
Sluymer’s accolades, Bloomberg writes, is calling the “major pullback in Bitcoin at the end of June 2019,” which was when BTC hit $14,000.
He also said the cryptocurrency was a buy in May 2019, when the asset was
trading under $10,000.
The rest of his firm has shared even more bullish sentiment on the leading cryptocurrency.
In a recent interview with Yahoo
Finance, one of Fundstrat’s co-founders, Thomas Lee, said that his firm’s analysis suggests the cryptocurrency has a good amount of potential to surge above $20,000 in the following six months.
Lee looked to the fact that the cryptocurrency has recently crossed above its 200-day moving average, the rolling average of the asset’s price over 200 days. (For those unaware, this specific moving average is often seen by investors as an indication of any asset’s long-term trends.)
He elaborated that per Fundstrat analysis, whenever the cryptocurrency confirms a reversal above the 200-day moving average, the average six-month forward gain is 197%. The cryptocurrency crossed above the 200-day moving average late last month in the high-$8,000s, suggesting a price of somewhere in the region of $26,500 in six months if Fundstrat’s analysis holds true.
It isn’t only this simple technical factor that could rocket Bitcoin higher. Instead, Lee has cited a confluence of fundamental events that could send the leading cryptocurrency higher in 2020.
One he cited was the geopolitical and macroeconomic trends, specifically citing the coronavirus outbreak as a potential catalyst that could allow Bitcoin to prove itself. There has been some chatter about Bitcoin acting as a hedge against potential economic troubles caused by the virus outbreak.
Also, per previous reports from Blockonomi, the analyst looked to the upcoming block reward reduction of BTC, slated to decrease the asset’s inflation rate by 50%.
The idea here being this upcoming event should prove Bitcoin’s scarcity, meaning that an imbalance of demand and supply should create price appreciation.
On cryptocurrency as an industry in general, Lee said that with only good
blockchain projects surviving “that actually have real progress and fundamental values,” it may be a good time to look at crypto once again. He did not name any specific cryptocurrency projects that have caught his eye, save for Bitcoin anyway.