Bitcoin price analysis: BTC/USD struggles below $6,500 -Tom Lee reckons “the bear market has run its course in crypto”

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  • “So I think the bear market has largely run its course in crypto, and it’s been healthy,” Tom Lee.
  • The general trade is positive at the time of press but faces significant resistance at the trendline.

Bitcoin trading is currently very mundane on Monday. It is as though both the buyers and the sellers are afraid of making big moves and risk entering into either a bear trap or a bull trap. Nonetheless, BTH/USD has broken the trendline support at $6,485.60 after the buyers lost grip on trading roughly above $6,520. The technical signals are sending mixed messages, which means that traders must tread carefully especially for short trades.

In other news, one of the highly regarded analysts in the industry, Fundstrat’s Tom Lee has introduced a different perspective to the growth of Bitcoin and other digital assets. He compared the digital asset economy to the time when the world introduced wireless communication and the internet. Older people at the time had no clue what was happening in the ‘90s. However, it was a revolution greatly embraced by the younger generation at the time.

Consequently, he says that the same will happen with Bitcoin and the cryptos mainly embraced by the Millenials who hate the banks. A past survey by Facebook indicated that 92% of Millenials have no trust in the banks while at the moment 70% of the Millenials have no time for the commercial institutions and banks. According to the data cited by the analyst, at least $7 trillion of the total financial assets will be under the control of the Millenials by 2020. Some of these funds are funds will end up in the crypto space leading to a tremendous growth. He said that the market has reached its bearish limits and a rebound is underway.

“So I think the bear market has largely run its course in crypto, and it’s been healthy. It’s been resetting capital. It’s resetting investor expectations. But most importantly, the only time you can really make money in a big way is to buy when investors aren’t buying. That’s the real opportunity,” Thomas Lee said in conclusion.

Meanwhile, Bitcoin is trading at $6,480, although it has traded intraday highs of $6,525.26. It has also traded lows of $6,415 on Monday. The general trade is positive at the time of press but facing significant resistance at the trendline. The stochastic has retreated from the overbought while the MACD momentum indicator is moving higher but still below the mean (0.0). BTC/USD must maintain the short-term support at $6,440 to stay away from breakdowns heading to $6,400. A stronger support is highlighted at $6,200, even though $6,400 is a viable support area. On the upside, trading above the trend line is expected to open the door towards $6,500 in the near-term.

BTC/USD 15-minutes chart

 

 

 

 

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