The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.[1]
Fundstrat Global Advisors co-founder Tom Lee continues to be bullish on Bitcoin. He expects Bitcoin to trade roughly at 2.5 times the mining cost, which according to him will increase from the current levels of $7,000 to $9,000 by the year end. Lee has a target of $20,000[2] and higher for Bitcoin by the end of 2018.
We don’t concur with his target levels from the technical analysis point of view. $10,000 and $12,000 are likely to be two price points that will be difficult to cross for the bulls.
However, if cryptocurrencies witness a flood of institutional investing, then those resistance levels will be easily crossed. While the retail investors are largely staying away in fear of a further fall, the professional traders are using the current downtrend as an opportunity to enter crypto trading.
Amsterdam-based speed trader Flow Traders NV, one of the largest securities traders in Europe, has entered[3] the cryptocurrency market, as reported July 5. The arrival of such giants is a clear indication that the larger players are taking the plunge and these lower levels are unlikely to remain for long.
So, what can the traders buy now? Let’s find out.
BTC/USD
Though Bitcoin[4] is sustaining above the 20-day EMA, it is finding difficult to break out of the overhead resistance at $6,953.38. Once this level is crossed, there is no resistance until $7,750.
