By CCN.com: Independent research firm Fundstrat Global Advisors had accurately called bitcoin’s crash late last year when the cryptocurrency was trading at $5,500 levels, but it now believes that the bad days are over and the time to buy is here once again.
Fundstrat technical strategist Robert Sluymer, who had made the negative call in mid-November last year, believes that bitcoin is all set for a rally in the second half of the year as he sees bullish long-term technical trends developing. He tells clients to use the “recent weakness to accumulate” bitcoin, according to a research note cited by Bloomberg.
Use pending pullbacks to continue accumulating Bitcoin in the second quarter in anticipation of a second-half rally through ~6,000 resistance,” Sluymer wrote in a note May 2. He sees Bitcoin’s rebound from its 200-week moving average and breakout from its first-quarter trading range as “the early stage of a longer-term recovery developing.”
Sluymer goes on to add:
While it’s premature to conclude Bitcoin will not retest support near $4,300, we would encourage traders and investors to remain focused on the bullish longer-term technical profile developing.
Sluymer’s accurate record at calling out bitcoin price trends is a good reason to accumulate the cryptocurrency. He had warned in November last year that bitcoin had suffered “significant technical damage,” followed by another warning in February this year when he said that the technical patterns in crypto were still weak.
It was only in early April that bitcoin came into its own and reclaimed the $5,000 level. But now that bitcoin’s price has seen a sustained rally and is trading around $5,700, it might not be long before it tests Sluymer’s $6,000 resistance.
If that happens, Fundstrat co-founder Tom Lee will be grinning teeth to teeth as he believes bitcoin could be on its way to $20,000 and beyond.
Fundstrat was one of the mainstream Wall Street firms that made an early move into analyzing bitcoin and other cryptocurrencies, and even developed what they call the Bitcoin Misery Index (BMI).
Co-founder Tom Lee is a bitcoin bull as he once believed that the cryptocurrency could hit $25,000 by the end of 2018. That didn’t happen and Lee had to abandon his price target.
But in an interview with CNBC last week, Lee said that he sees new all-time highs by 2020, which means that the digital asset could go past the previous all-time high of $20,000.
Lee says that there are 11 signs that point toward a bitcoin bull market, including higher volumes and an increase in the number of institutional investors trading crypto.
Lee is not alone as Fidelity Digital Assets recently said in a research paper that crypto assets will witness higher institutional investments in the coming five years.
In a survey of 450 institutions, Fidelity found out that 20 percent of institutional investors such as hedge funds, registered investment advisors, and family offices already hold crypto assets. What’s more, nearly half of the surveyed institutions see a place for crypto in their portfolios.
With interest among both individual and institutional investors rising, it won’t be surprising to see Fundstrat’s bullish call turning out to be true. This is why now may be a good time to load up on the cryptocurrency as calls for a $20,000 bitcoin price are gaining ground.
Last modified: August 2, 2020 10:59 AM UTC