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- Fundstrat CEO Tom Lee predicts a 5x rally in the Bitcoin price upon the approval of a spot Bitcoin ETF.
- The Bitcoin price is currently in a make-or-break situation and lacks liquidity for any sort of directional movement.
The world’s largest crypto Bitcoin (BTC) and the broader cryptocurrency market continue to be under selling pressure. Over the last 24 hours, the Bitcoin price has dropped another 1.69% and is currently trading under $29,000 at $28,640 levels. However, there’s no drop in the total number of bullish calls for Bitcoin.
Tom Lee, co-founder of Fundstrat, recently made a bullish prediction for the Bitcoin price to hit $150,000, if the US SEC approves the spot Bitcoin ETF. The U.S. Securities and Exchange Commission (SEC) has received multiple applications for the spot Bitcoin ETF following financial giant BlackRock making the move. However, some market analysts noted that the SEC’s approval of spot Bitcoin ETF won’t come before early 2024.
Speaking to CNBC, Fundstrat analyst Tom Le said that this factor could boost Bitcoin’s price to over $150,000, possibly even reaching close to $180,000. However, he underlined that this positive projection relies on SEC approval. While Bitcoin ETFs have gained traction globally, a U.S. endorsement holds significant importance for the domestic crypto sector.
Last week itself, the SEC delayed its decision on Cathie Wood’s ARK21 application. On the other hand, Europe gets its first spot in Bitcoin ETF with London-based Jacobi Asset Management launching it on the Euronext Amsterdam exchange.
A Make or Break Situation for Bitcoin Ahead?
As we see, Bitcoin has entered into a very strong consolidation at around $29,000 with the BTC price volatility hitting multi-year lows. It is clear that Bitcoin has been struggling to find any clear directional momentum at this point.
On the technical chart, Bitcoin seems to be currently in a make-or-break kind of situation. Bitcoin is currently facing a significant test of the multi-contact point trendline starting from the 2023 bottom. If it moves below the August low, it could either indicate a bearish signal or a bear trap, notes popular market trader Peter Brandt.
Bitcoin seriously challenging multi-contact point trendline from 2023 bottom. Move through Aug low would be bear signal or bear trap. $BTC pic.twitter.com/FR5eqwgJis
— Peter Brandt (@PeterLBrandt) August 16, 2023
Responding to Brandt’s tweet, popular crypto market analyst Will Woo noted that the Bitcoin price could be gearing up for a volatility squeeze. He added.
Crunch time for BTC. Macro headwinds from US dollar strength. Meanwhile, there’s increasing demand on the futures market (pro traders) and on-chain fundamentals picking up. Either way, up or down, we are now setting up for a strong move. Volatility squeeze incoming.
Interestingly, Bitcoin has done better than US equities so far in this month of August. Bitcoin remains within a narrow price range at $29.4k, but this steady performance is surpassing the performance of equities markets such as the SP500 in August. The break in correlation that started in mid-July has historically been favorable for crypto prices, noted on-chain data provider Santiment.
📊 #Bitcoin continues to stay in a tight price range at $29.4k, but this flat behavior is actually outperforming equities markets like the #SP500 here in August. The correlation break that began in mid-July is historically beneficial to #crypto prices. https://t.co/94iKuzxhP6 pic.twitter.com/WFE7HJ0ys6
— Santiment (@santimentfeed) August 16, 2023
Santiment also highlights that the trader activity hints towards some bottom indicators. With the ongoing decline in crypto market caps, traders are currently engaging in shorting. When the market sentiment turns against assets, it raises the chances of liquidations, which in turn can drive prices up. This development serves as an awaited signal for numerous bullish investors, it notes.
