Despite the recent fall of Bitcoin, experts have not yet abandoned their bullish sentiment. In fact, it seems that current events have only served to reinforce this perception.
While it is true that bitcoin experienced a sharp drop, breaking essential supports for swing and day traders, in a long term vision it is possible that this is only an exception or even a shadow in long-term candles, which could serve to provide further stability to trends.
One of the analysts who doesn’t give up on his bullish point of view is Tom Lee. In a recent tweet, he explained that the bullish sentiment in the bitcoin markets has strengthened despite comments by Donald Trump and Steve Mnuchin.
Lee bases his reasons on the fact that the White House gave Bitcoin some notoriety even though it showed no interest in taking immediate action that could really damage trading. Mr. Lee also explains that the recent pullback served to control a bit the overhype of some traders, demonstrating that the rise is a product of the natural behavior of the market – which is more important and stable than a trend driven by FOMO.
Another expert who shares Mr. Lee’s opinion is Ikigai Fund’s CIO Travis Kling. The well-known financial analyst considers as very positive the fact that the Fed and the Treasury Department recognize Bitcoin as a store of value.
As institutions begin to talk about Bitcoin, public interest in these technologies is likely to increase, which may stimulate trading.
Kling also considers as “wildly bullish” that these institutions — and President Trump himself — recognized the importance of Bitcoin and its differences against Libra; a controversial project endorsed by Facebook that, although using blockchain technology, has caused a lot of discussion about its nature; being labeled under categories that range from a cryptocurrency to an ETF or even digital fiat money.
BTC is currently recovering from a drop that started at $13,000 and broke the support of $10,000. Its price at the time of this note gravitates around $11000.
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Last modified: June 23, 2020 2:45 PM UTC