Yesterday, CNBC “Fast Money,” after weeks of not covering Bitcoin, finally bent the knee, discussing the feasibility of Tim Draper’s $250,000 prediction for the leading cryptocurrency.
Contributor and investor Brian Kelly remarked that if you look at BTC’s long-term logarithmic growth channel, the upper bound of that channel, which the asset has been trading in for eight years now, is somewhere in the $200,000 range by 2022-2023.
While the consensus on that panel was a tentative yes, in that Bitcoin’s directionality remains long-term bullish, how do analysts on that panel expect for BTC to do in the short term?
Bitcoin Nearing Buy Zone, Fundstrat’s Lee Says
Tom Lee, the co-founder of Fundstrat, was sitting in on that panel to weigh in on Bitcoin trends. And interestingly, he was optimistic, echoing a line of his made earlier this year that 2020 is likely going to be good for cryptocurrencies and related technologies.
Lee said that if you consider a technical indicator that has worked quite well for the cryptocurrency market, “Bitcoin is nearing a buy.”
Could #bitcoin hit $250,000 in the next two years? @BKBrianKelly and @fundstrat's Tom Lee help us break down longtime venture capitalist Tim Draper's bold call. pic.twitter.com/dGW4nJL86f
— CNBC's Fast Money (@CNBCFastMoney) December 20, 2019
Bull Argument Cut and Dried
While Lee still seems to be somewhat tentative in assuring that BTC is entering buying territory, there are distinct signs that a bottom is nearing, and that the cryptocurrency will outperform heading into 2020 and beyond.
Thomas Thornton, a hedge fund services specialist and market analyst, recently posted the chart below to Twitter, showing that a Bloomberg chart of Bitcoin with the TD Sequential Combo indicator suggests that one of BTC’s candles is printing a “buy 13” signal. Such signals, the TD Sequential indicator suggests, are indicative of impending price reversals.
Bitcoin with new DeMark Combo and Sequential buy Countdown 13's. Needed to confirm is a price flip up (new 4 day closing high) pic.twitter.com/7SCPVxxFfU
— Thomas Thornton (@TommyThornton) December 17, 2019
That’s not to mention that such 13 candles were registered by the TD Sequential when BTC hit $20,000 in December 2017 and when BTC cratered to $3,150 on December 14th.
There’s also a sentiment from an array of industry executives that the impending block reward reduction will boost Bitcoin. The Winklevoss Twins of Gemini, for instance, said: “The bitcoin halvening should already be priced in but isn’t (it never has been) and it therefore will catalyze a large bull run (as it always does).” While Johnny Dilley of Mempool Partners echoed this: “Everyone forgets the halving. As we head into the halving, fomo will kick in.”
Featured Image from Unsplash