President Donald Trump’s dismissal of Bitcoin as a currency has continued to elicit a lot of mixed reaction regarding the prospects of the maiden crypto.
President Donald Trump took to Twitter to attack Bitcoin and other cryptocurrencies stating that they are not a form of currency and very volatile. Notable figures in the cryptocurrency world view this attack as a positive step for Bitcoin.
According to Funstrat Analyst Tom Lee, Trump’s mention of Bitcoin and Facebook’s Libra increases the awareness of digital assets. He notes that it makes other 99% of people aware of Bitcoin.
Lee points out that “bad publicity is sometimes better than no publicity at all”. Speaking to Yahoo Finance, Lee stated that this is not a bad thing as currently, exchanges and a few large wallets hold a tremendous amount of crypto, and this is why there is such intense volatility.
Lee added that notable institutions are now integrating cryptocurrencies in their systems, something that increases the liquidity of the market.
When asked about what Trump’s tweet means for the future of Bitcoin, Lee maintained a bullish prediction. He stated that at the moment, Bitcoin is trading at a level that has only been seen in 3% of its historical trading timeline. Lee referred to past Bitcoin price movements.
He pointed out that historically Bitcoin has rallied 200%-400% during the following four months and when applied to the current price action this equates to a Bitcoin price of $20k to $40k by ending of 2019.
Lee also commented on $13,400 as Bitcoin’s stiff resistance level. He agreed that the $13,400 level is functioning as a robust short-term resistance. However, Lee countered that in finance circles, the concept of a triple top does not exist and if it applies to Bitcoin then we can expect the coin to surpass the resistance level on its third attempt.
He later made a follow up on his Twitter page and admitted that there was one thing that could pose a significant setback for Bitcoin, but realistically such an extreme event is unlikely.
Bitcoin is yet to surge significantly since the anti-crypto sentiment from the president, the price has continued to plunge and currently trading at $10,330 by press time with a market cap of $184 billion.
