Bitcoin's in 'Bull Market Territory', Prominent Trader Alex Krüger Argues

Omar Faridi

Prominent crypto analyst Alex Krüger has argued that bitcoin (BTC), the world’s most dominant cryptocurrency, is now in “bull market territory.” This, after BTC recently surpassed the $7,000 mark to reach a high of over $7,500. According to Krüger, key resistance levels to watch for the bitcoin price and other factors to consider are as follows:

Trading "Latest BTC Bull Run" Doesn’t Require “A Single Indicator”

On May 11, Krüger noted via Twitter that trading during the latest bitcoin bull run did not require “a single indicator.” He added that indicators may be too costly and that they’re often “used to find overbought signals.” Per the New York-based economist and crypto trader, indicators are also being used to track “divergences” in price movements and “to trade against the trend.”

Meanwhile, widely-followed crypto analyst, “The Crypto Dog” revealed he believes that we may be closing in on the “local top” for both the bitcoin price and bitcoin dominance:

Interestingly, 57% of Twitter users responding to Krüger’s survey, completed on May 9, 2019, believe that Bitcoin will trade as high $10,000 this year.

Bitcoin Will Represent “5% Market Share Of Earth”

As the crypto ecosystem appears to be recovering from the extended bear market, which lasted throughout 2018, several prominent investors have made some bullish bitcoin price predictions.

Legendary billionaire venture capitalist, Tim Draper, recently predicted that Bitcoin will account for “5% market share of the earth” within the next four years. The founder of Draper Associates also believes bitcoin's price will surge to $250,000 by 2022.

Meanwhile, Mark Yusko, the CEO of Morgan Creek Capital Management, has predicted that the bitcoin price could surge to $400,000. Yusko, whose comments came during an interview aired on, noted that the damaging Binance hack, resulting in a loss of over 7,000 bitcoins, may have “confirmed” Bitcoin’s “value thesis.” The prominent investor explained that people normally “don't steal things that don't have value."

A $20,000 Bitcoin Price Prediction

As CryptoGlobe reported on May 11, the Canaccord Genuity Group, a Toronto-headquartered multinational, full-service investment bank focused on “growth companies,” has forecast a bitcoin price of $20,000 by 2021.

Analysts at Canaccord had conducted an extensive market analysis, which took into account bitcoin’s price movements over the course of two different four-year time periods, including 2011-2015 and 2015-2019. The firm’s analysis also took into consideration the halving of bitcoin miner rewards every four years, and how it may affect the cryptocurrency’s price.

Bullish Bitcoin Investors Are Ignoring Institutional Bears

Neil Dennis

Bitcoin investors remained positive this week, despite data showing that bearish bets on the futures market had increased during the previous week.

Positioning data on CME Bitcoin futures showed that institutional managers held 14% more short positions in the seven days to Friday, June 21, than in the week before, according to the Commodity Futures Trading Commission (CFTC).

Futures trade allows investors to back an asset's losses as well as gains: short positioning means backing an asset to fall in price over a defined period.  The increase in the CFTC short position data on CME Bitcoin futures, therefore, would indicate growing bearishness by the larger institutional players.

Playing it by the Charts

They may have been playing it by the charts. The previous two tops occured in mid-May when the price of Bitcoin reached a high of $8,352 before falling back nearly $1,000, and then at the very end of May reaching $9,066 before falling back to $7,807.

The chart shows that in the week to June 21, when shorts on CME Bitcoin futures grew, Bitcoin pushed up above $10,000, in a chart pattern that might have led many to believe another pullback was imminent.

This drop, predicted by many institutional investors, never came, however, and private investors continued to back the Bitcoin rally. Indeed, the CFTC report showed that smaller investors continued to hold more long positions - backing the continued rally: investors with fewer than 25 Bitcoin futures contracts showed four times as many long positions than shorts.

Short Covering

This may help explain how the rally of the last couple of weeks gained momentum, as those on the institutional side joined the buying to cover their short positions.

Tanya Abrosimova, analyst for FXStreet , said:

Many experts believe that at this stage Bitcoin is driven by FOMO (fear of missing out), while the market repeats the situation of late 2017.

It is also likely that Facebook's announcement about the lauch of its Libra cryptocurrency caught the institutional shorts on the wrong side of the market. Since the Libra announcement on Tuesday, June 18, Bitcoin has gained more than 30%.

Abrosimova added:

Looking technically, Bitcoin has been growing strongly for eight days in succession, which is the longest period of uninterrupted growth since December 2017. As BTC/USD is trying to take out a new barrier at $12,500. Once it is out of the way, the next bullish target of $13,000 will quickly come into view.