Bitcoin surged up to 5% to $46,000 on Monday. Thus, helping to clarify a significant level of technical resistance that indicates a new potential. For the first time since mid-May, the popular cryptocurrency surged over its 200-day average. Thus, typically considered a crucial level of support or resilience by technical experts and traders.
Bitcoin’s rise upward, considered positive following a false collapse under the carefully monitored $30,000 support last month. In addition, the upward movement of Bitcoin in the midst of a regulatory and legislative attack. According to Fundstrat’s Thomas Lee, by China and the US is a significant risk-on signal.
Lee probably referred to China’s bitcoin mining attack and a bipartisan infrastructure bill proposal. That would enlarge the appointment of brokers in the crypto sector.
Upward Momentum in Bitcoin
According to Lee, Bitcoin averages a six-month return of nearly 180% after breaking above its moving average of 200 days. Forward, the upward momentum in Bitcoin should put it on for another resistance test of around $51,000, which marks the most crucial level of Fibonacci retracement level, according to Katie Stockton of Fairlead Strategies. This is up to 11 percent from the current level.
But Lee believes Bitcoin may go much farther by year-end, saying that the popular cryptocurrency has a move to $100,000. While it is constructive for additional gain to move above its 200 days moving average. Technical analysts will wait for confirmation of the move, as reported to close consecutive days above this important level.
Lee is not alone in this forecast, as many experts believe Bitcoin is expected to reach $100k before the end of this year. Bloomberg Intelligence analyst Mike McGlone said earlier this week that, “Bitcoin appears to have built a base around $30,000 that’s akin to $4,000 at the start of 2019, and we see performance parallels that could get the benchmark crypto back on track toward $100,000.”