The cryptocurrency market has lost some momentum in recent days. The price level is within the $ 7,000 to $ 7,800 range. However, Robert Sluymer and Tom Lee , both from Fundstrat, believe that this will change shortly.
Tom Lee sticks to his $ 25,000 forecast
Tom Lee is one of the most prominent crypto-bulls who, with regular appearances in the mainstream media, explains interrelations in the crypto market and reports on forecasts and indicators.
One reason why he sticks to his prognosis is that he believes that traditional institutions, such as banks, will enter the crypto-space. Lee also believes that the regulatory climate around cryptocurrencies will only improve if one reaches a higher level of institutional and private acceptance.
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In addition, Lee mentioned that one must equate the minimum value of a bitcoin with the mining cost needed to mine a Bitcoin.
“BITCOIN’S MINING COST WILL BE $ 14,000 NEXT YEAR, REFLECTING DIFFICULTY.”
He emphasized again and again that Bitcoin is traded at least at the cost level of mining. This relationship is also interesting before the imminent halving in 2020, when the daily amount of Bitcoin to be mined is halved. He also recently emphasized that Bitcoin neededonly ten days to reach a new all-time high.
Robert Sluymer sees the Bitcoin floor
Robert Sluymer, the analyst of Fundstrat took the statement that Bitcoin has already reached three times the floor.
We think Bitcoin is starting to get very important support at $ 7,000, and we think this will start a recovery process here.
He reiterated in yesterday’s broadcast that he believes Bitcoin is about to break its downtrend if the price surpasses the $ 7,800 resistance zone already highlighted today. He also pointed out that Bitcoin’s RSI is at a fairly low level, similar to earlier imminent upward moves.
Positive news in the market
There was some positive news this week. Probably the biggest argument for the $ 25,000 forecast is the market entry of traditional investors and institutions. It seems that this assumption is true. Within a week, two Wall Street giants announced a Bitcoin Trading Desk and their own Bitcoin Exchange.
Thus, traditional big investors have access to cryptocurrencies. Of course, this is also conducive to the legitimacy of Bitcoin as a “financial product”. We may see a regulatory framework later this year, allowing the crypto market to mature. In the meantime, several Wall Street companies have announced their entry into the Bitcoin market, we are curious when the respective BTC service will be released.
Marko Vidrih @cryptomarks
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Source : Newsbtc