Bitcoin has maintained its gains past $46,000 and according to analyst Mike McGlone, it could hit $100,000 in the not-so-distant future.
Fellow analyst Tom Lee also echoed the sentiment, pointing at BTC crossing the 200-day simple moving average which is always a cue to accumulate the cryptocurrency.
Bitcoin has defied the odds and a blow in Washington and has held steady above $46,000. The top cryptocurrency gained a slight 1.4 percent in the past day, even as some altcoins like Cardano see massive gains at over 20 percent. According to a number of analysts, Bitcoin is heading to $100,000 before the year ends.
Bitcoin’s rally has been credited to a number of factors, one of which is the continued accumulation by institutional investors. As we reported Tuesday, the dominance of BTC transactions above $1 million has shot up by 100 percent, representing 70 percent of on-chain volume. Those below $1 million have dropped by 50 percent.
Bitcoin to $100,000
And now, analysts predict that the top cryptocurrency is heading to $100,000. One of these is Mike McGlone, an analyst with Bloomberg Intelligence. The odds are tilted in Bitcoin’s favor after it corrected more than 50 percent and formed a solid base of support within a potentially longer-term bull market.
“It’s still got plenty of room to get the old high. And guess what? If it just follows Ethereum, it goes to $100,000,” he stated in a recent interview, referring to Bitcoin catching up, percentage-wise, to ETH’s performance.
For Tom Lee, Bitcoin crossing the 200-day simple moving average is the most bullish factor. Lee, who is the co-founder of Fundstrat Global Advisors, revealed that his firm advises investors to follow a simple rule – if Bitcoin crosses the 200 DMA, then it’s time to buy. Lee sees Bitcoin at $100,000 as a reasonable target.
For Lee, the rally will come after the renewed surge in coronavirus infections peaks. The Institute for Health Metrics and Evaluation recently predicted that the U.S COVID-19 cases will soon peak, pushed by the new delta variant. This means that after the peak, the numbers can only go down, and to Lee, this is bullish and will kickstart a long period of stocks and cryptocurrencies ‘mooning.’
Lee’s prediction holds a lot of water given that in 2020, he correctly predicted that Bitcoin would surge in 2021 above $40,000. “…Bitcoin should do even better in 2021 than it did in 2020, so something above 300%,” he told CNBC last year.
There still hangs a black cloud over Bitcoin, and other cryptocurrencies by extension, due to the Infrastructure Bill. The bill could impose new reporting and taxation requirements for cryptocurrencies.
However, Kristin Smith believes that there are positives to take from this. Smith, who heads the Blockchain Association, told Bloomberg’s QuickTake:
Washington now realizes what a force and how many different people across the United States are very passionate about cryptocurrencies. The more clarity, the more certainty that the industry has, the better off that we will be in the long run.
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