Bitcoin price technical picture
BTC consolidation period proved to be short-lived, as the price crashed below significant support level after another failed attempt to recover above $8,000.
BTC/USD short-term picture is clearly bearish, as the price stays below 50-SMA (hourly interval) at $7,800. Bears trod waters below $7,500, but the move was not sustained. As soon as it is cleared, the downside may gain traction and take the price to $7,318 (March 18 low). The nest support is seen at $7,000. On the upside, the resistance is created by the above-said 50-SMA and 61.8% Fibonacci level at $8,000.
BTC/USD, the hourly chart
Tom Lee says HODL
Fundstrat’s founder and famous crypto proponent Tom Lee comes out again to calm the crowd and tell the people that bulls will have the upper hand after all. He maintains the year-end target of $25,000 for Bitcoin, despite that the coin has been moving within the bearish trend since the middle of December 2017.
Lee, former chief equity strategist at JPMorgan Chase & Co, draws parallels with equity markets, where investors need to be patient to live through the bearish trend and stay on positive balance in the end.
On average, Bitcoin, just as the top equity indices, see most of its gains only during a few days each year, Lee agues. As a result, it stands to reason to buy and hold mot to miss out this handful of winning days.
“Long-time holders are worried because they have big gains and they’re worried about falling prices. But bitcoin is a great store value. It works really well. It’s kind of boring, because it’s not the latest and most exciting project. But it also is one of the most liquid ways to get exposure to crypto,” Lee said in the interview with CNBC on Wednesday.
His position supports the HODL mantra, repeated by Bitcoin purists during every crash. Earlier this month Lee predicted that Bitcoin price would reach $91,000 by the end of 2020, despite bearish factors that sent Bitcoin and other digital assets to the lowest levels of the year.
The Bearish News
Meanwhile, grim news continues flowing in. In Japan, the regulator forced two local exchanges to stop operations and withdraw registration applications, in Canada another major bank banned transactions with cryptocurrencies on both credit and debit cards.
The Bank of Montreal started to block the operations related to the digital assets, according to the information posted by Reddit users. They got a letter where the bank explained that the ban was meant to protect the clients from the volatile nature of cryptocurrencies.
At the same time, the Bank of Montreal will continue providing banking services to the new cryptocurrency trading platform, established by TMX Group, which owns the Toronto Stock Exchange and several Canadian financial companies.