It was not long ago when many analysts were mulling over the possibility of Bitcoin [BTC] bottoming out, prior to a massive breakout. The recent Bitcoin boom was seen as a U-Turn from that very ‘bottom’ by many analysts, who now claim that the price will continue to rise up.
Brian Kelly, Founder and CEO of BKCM, was one of these analysts, claiming that this ‘bottom’ had been reached and the top cryptocurrency continue on its bullish swing. With the coin regaining prime dominance in the coin market and seeing its highest daily gain since over a year, Kelly added that the “sentiment has shifted here.”
He further added that the touted ‘bottom’ was now in the rear-view mirror,
“All indications that we have — whether it be fundamentals, technicals, the quantitative analysis we do — all suggest that we probably have at least started to put in the bottoming process.”
In an interview with CNBC’s Fast Money, Kelly stated that this Bitcoin green wave was nothing new, adding that it was “very similar” to previous trading cycles.
The two main reasons behind the present surge were the improvement in the coin’s fundamentals and the embrace from the institutional finance giants, Kelly said. Many big-name investment banks have recently moved towards cryptocurrencies, legitimizing the claims of the decentralized currency industry.
Bitcoin’s $5,000 breakout may not have one key cause, Kelly added. However, the entry of institutional players had more of an effect than many believe, he said.
“Even high net worth individuals, family offices, are starting to take a serious interest.”
With an increase in the price and adoption of cryptocurrency, there is a positive externality to crypto-facilitating companies. Custody and brokerage firms that dabble in decentralized currency and blockchain technology will be given a massive boost in a bullish market.
“There’s a couple major brokerage firms that are rolling out some custody solutions. So there’s quite a bid going on under the surface.”
Kelly added that given the conditions of the market, the surrounding sentiment, the trade volume in question and other positive factors in the cryptocurrency space, a move over $6,000 is possible
“Probably a reasonable target is close to $6,000 for this move.”
Kelly concluded by saying that even if the price skyrocketed by another 37 percent to reach $6,500 to $6,800, he would not call the coin overvalued in any regard.
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