Bitcoin Bull Run Imminent, says Prominent Investor
During the 2018 slump, Bitcoin (BTC) lost a significant portion of its value but now appears ready for another significant bull run that could see it recover tremendously.
Bitcoin lost over 70% of its value in 2018. However, an analysis of a technical indicator reveals a positive trend reversal for the most-valued cryptocurrency.
The RIG trend lines indicator according to Bloomberg, points to an imminent price rally for BTC. These RIG trend lines are technical indicators that combine both the relative strength index (RSI) indicator and momentum studies.
In an interview with Bloomberg, co-founder of Fundstratand prominent Bitcoin investor, Tom Lee said that it’s not too late for a Bitcoin rebound. He noted that he has foreseen various catalysts that could still ensure the BTC price surges higher by the end of the year.
According to Lee, the growth in a number of major investment banksthat are building products in conjunction with Bitcoin, and the launch of an ICE-backed crypto exchange are the two main factors that could provide a bull run for Bitcoin.
“I do believe major institutions get FOMO if BTC rises. Institutional investors want [volatility], and today you can find [volatility] in cryptocurrencies and pot,” he added.
However, there are some voices within Wall Street that believe institutional adoption could cause damage toBitcoin.
Wall Street veteran now Bitcoin evangelist,Caitlin Long, believes that puttingBitcoin in the hand of centralized players would “offset the currency’s algorithmically-enforced scarcity.” Also, holding private keys on behalf of clients goes against the ethics of BTC, nonetheless, custodians carry out this practise in the same manner as conventional assets like stocks.
In the global market, Bitcoin was one of the top 10 best performing cryptocurrencies, with quite a number of cryptocurrency investors opting to buy Bitcoin. But 2018 brought different fortunes for the cryptocurrency altogether. Investors who invested heavily during its highs have already left the market suffering heavy losses, while patience is growing thinnerfor those hoping for a bull run.
Bitcoin last reached the $8,000 price mark towards the latter dates of July 2018, with regulatory delays, low adoption rate, and the arrival of technologically advanced, competitive assets further contributing to the negative trend of BTC throughout the year. The cryptocurrency has shuttled between minor price surges and subsequent declines for a significant part of the third quarter of the year.
However, despite these challenges, crypto-enthusiasts still believe that BTC has found its bottom near $6,000. The price has reversed from its downtrend upon testing the said level on a number of occasions this year. Though in the medium-term, BTC uptrend is still capped by a significant descending trendline, which is making the cryptocurrency rangebound for a period of time.
Lee believes in the strength of the $6,000 mark, as a strong support from a miner’s perspective. Bitcoin miners are rewarded with 12.5 BTC for offering computational power to support the decentralized network—which they could later trade for fiat or hold for speculation. Currently,miners are heavily invested in the machinery, human resources, and space that is required to support the Bitcoin network and Lee thinks $6000 is miners’ “breakeven” revenue level – a no-profit-no-loss scenario.
“The fact that we are holding near $6,000 is [actually] very good […] despite the lower highs we are seeing we are starting to reverse. It’s a sign of momentum which is [really] good,” Lee said.
Elsewhere in the cryptocurrency market, there are recent signs of a price resurgence for many cryptocurrencies—with Ethereum, XRP, and Bitcoin Cash having experienced significant price rallies over the last few days.
Recently, Tom Lee predicted that Ethereum (ETH) could reach $1,900 by the end of the year. He noted that ETH has underperformed its top-ten peers by two standard deviations. Thus, a massive price surge is on the ranks for the second-ranked cryptocurrency.
In recent years, Q4 has witnessed significant gains for the cryptocurrency market. Now, many stakeholders continue to hold out hope that Q4 2018 would follow this trend of rapid price surge.