Tom Lee, the chief of research at Fundstrat, has reaffirmed his optimistic stance regarding Bitcoin , forecasting that the cryptocurrency could reach $100,000 by year-end. In a recent segment on CNBC, he examined the potential ramifications of the political atmosphere following Donald Trump’s election victory over Kamala Harris. Lee suggested that Bitcoin might play a significant role in addressing some fiscal challenges faced by the United States, especially if it were to be recognized as a national reserve asset — a pledge made by Trump earlier this year at the National Bitcoin Conference.
Lee further praised Bitcoin ’s security features and blockchain technology, positioning it as a credible alternative to traditional financial systems. He conveyed confidence about Bitcoin ’s potential to tackle existing economic issues, enhancing its allure for investors. He noted that the current price trajectory aligns with historical patterns traced during previous Bitcoin Halving cycles, which typically reduce the rate of new Bitcoin creation and tend to foster positive price movements.
In addition, crypto analyst Ali Martinez shed light on Bitcoin ’s current market dynamics by referencing past performance trends. He highlighted that during the 2017 bull market, Bitcoin experienced a 156% surge beyond its previous all-time high before correcting by 39%. In 2020, a similar pattern unfolded with Bitcoin rising by 121% followed by a 32% pullback. Martinez speculated that Bitcoin might ascend to $138,000 before facing its first significant correction based on these historical benchmarks.
However, he also raised concerns about a potential impending correction as investor sentiment appears to be shifting toward greed. This sentiment is reflected in a notable increase in google searches related to Bitcoin and substantial profits realized by investors, amounting to over $5.42 billion.
From a technical analysis perspective, Martinez pointed out the TD Sequential indicator signaling a sell alert on Bitcoin ’s daily chart, as well as the Relative Strength Index suggesting an overbought condition. He recommended monitoring crucial support levels between $85,800 and $83,250, with further levels at $75,520 to $72,880. For Bitcoin ’s bullish trend to persist, it is vital for the price to stay above $91,900, which could pave the way for a breakout towards $100,680. Currently, Bitcoin is trading at approximately $90,970, representing a nearly 2% increase over the past 24 hours, according to CoinMarketCap data.
