Bitcoin At $6,000: Key Level to Watch, Analyst Says
A Houston-based economic analyst outlined that it’s very important to watch how Bitcoin behaves at the major resistance level at $6,000. Meanwhile, Fundstrat’s Thomas Lee has said that the cryptocurrency is “likely” to reach new all-time highs “around” 2020.
Bitcoin at $6,000: Important Level to Watch
Houston-based economic analyst Jesse Colombo, popular for his warning about the U.S. housing and credit bubble back in 2008, has shared his take on the current performance of Bitcoin.
According to him, Bitcoin’s performance throughout 2019 has shaken the bears and has started to develop more of a bullish trend.
However, in order for the positive trend to be confirmed, the analyst believes that Bitcoin needs to break through the $6,000 resistance level in a “decisive manner.” Should it manage to do so, it would also increase the probability of further gains.
He explains that $6,000 is an important resistance because that’s where Bitcoin found serious support for much of 2018 until November when the cryptocurrency dropped with about 50 percent in a couple of months.
Bitcoinist recently reported that Bitcoin’s price consolidation above $5,000 is a positive sign, according to a cryptocurrency hedge fund.
On the other hand, however, Colombo has also pointed out that if Bitcoin price 00 fails to close above $6,000, it may fall further back down and re-test the lows in the range between $3,000 and $4,000.
Tom Lee Says Bitcoin Price New ATH ‘Likely’ in 2020
On another note, popular bitcoin permabull and chief analyst at Fundstrat Global Advisors, Thomas Lee, has once again called for a major improvement in Bitcoin’s price somewhere “around” 2020, saying that various catalysts are “likely” to drive it to a new all-time high.
It’s worth noting, however, that Lee is undoubtedly more cautious with his wording and hasn’t provided a precise target price nor a specific date.
However, the analyst has outlined that fundamental and technical factors are improving.
I think you’re seeing signs that fundamentals are improving, technicals are improving, and now there’s real activity by, essentially, crypto hodlers.
These are just three of the 11 signs that, according to Fundstrat, are characteristic of a bull market, potentially signaling that the crypto winter has come to its end.
Additionally, Lee also outlined that Bitcoin’s standard deviation from the S&P 500 which is about 2.5 this year, could also help push the cryptocurrency’s price further.
One thing to keep in mind is whenever the S&P has made a big move, … it’s almost always led to a big move in crypto later in the year. […] So I think … a 2.5 standard deviation move for bitcoin would take it to $14,000. I’m not saying that’s where it’s going to go, but that’s the magnitude of move that would be a catch-up.
What do you think of the current Bitcoin price performance? Don’t hesitate to let us know in the comments below!
Images via Shutterstock, Forbes.