Tom Lee confirms his forecast on Bitcoin
In a conversation with Bloomberg this week, Fundstrat analyst Tom Lee once again confirmed his forecast for the bitcoin rate - $ 25,000 by the end of the year. One of the reasons he believes in cryptocurrencies is the likelihood that traditional financial institutions will one day actively invest in the crypto industry, seeing in it "high-yield" opportunities. According to Lee, the regulation of the crypto industry will only improve the adoption of the cryptocurrency in both the institutional and retail sectors.
Lee mentioned one of his most beloved indicators - the cost of mining bitcoin:
"The total costs of mining bitcoin next year will be $ 14,000 - this reflects the complexity of mining."
He also noted that the bitcoin rate will keep at the level of the cost of mining - in other words, the bitcoin rate, if necessary, will rise to the cost of mining.
Another analyst at Fundstrat Robert Slimer believes that if the crypto market remains in a bearish state, bitcoin should show a series of several lows.
"We think that bitcoin will begin to receive serious support around $ 7,000. This is where the recovery process begins, "Slimer said in a conversation with CNBC.
According to him, bitcoin is trying to "overcome its downward tendency" - if the first cryptocurrency will manage to keep a number of low points, characteristic for a downward trend, then its rate can go up.
Slimer also draws attention to the fact that RSI of bitcoin is at a very low level - it is similar to the one that was before the temporary movement up last year.
"There is a premise, but we also need bitcoin to break through and move through several key points," Slimer said.
According to Slimer, one of these points is 7,800 dollars, which bitcoin unsuccessfully tried to overcome last week.
"7 800 dollars - bitcoin need to break through this level to prove that he managed to achieve a trend reversal," - said the analyst.
Like many other analysts, Slimmer had something to say about the "worst" scenario. In his opinion, if bitcoin does not stay at the levels of 7,350 and 7,000 dollars, then we will see a further fall in its rate.
However, Slimmer, like his colleague on Fundstrat, is still optimistic about the first cryptocurrency:
"If you are in shorts, you need to be very careful and reduce the risk of a short position. But if you are in longs, then this is where you have to start investing in a long position. "
Posted from my blog with SteemPress : https://coinatory.com/2018/06/10/tom-lee-confirms-his-forecast-on-bitcoin/
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