For the last eight months, Bitcoin (BTC) has continued to register lower prices, testing major resistance zones at $10,000, $8,000 and $7,000. Tom Lee strongly believes that the stability of BTC at $6000 despite its lower highs, is optimistic.
The $6,000 Resistance Level
At the beginning of 2018, Fundstrat stressed in a report that the $6,000 zone will likely be experienced by BTC in the mid-term since it is the breakeven line for miners. That implies miners that use electricity and mining tools to validate activities on the Bitcoin blockchain can still produce some gains if the value of BTC is sustained above the $6,000 mark.
Lee made it clear on Bloomberg that the stability of Bitcoin at the $6,000 level and two key reagents awaiting BTC at the end of 2018 could greatly drive the value of BTC up before the year ends.
The Two BTC Catalysts
Lee believes that firming infrastructure of the Crypto exchange market and the fear of missing out (FOMO) among institutional investors are the key catalysts that will greatly drive the price of BTC up.
In the recent past, Bakkt, a crypto exchange owned by ICE, Starbucks, and Microsoft, has been creating the first regulation-based site that basically aims to function as a trusted custodian and brokerage for giant investments.
Ultimately, with the excellent services and products provided by Bakkt, Lee thinks that institutions will have the capacity to venture into the crypto market.
“I think there is a few. One, this new exchange called ICE Bakkt will be launched. It is going to be really one of the first regulated exchanges. I think around that, there is working being done by these major investment banks to build products to support it or work with it. I think institutions are waiting to be involved,” he said.
How BTC Will End in 2018
Lee predicts that based on the stability of BTC at $6,000 since July, it is likely for the currency to exhibit strength and momentum by November and December, a time in which the crypto market historically appears to register large gains.