Famous crypto analyst Michael van de Poppe believes that it is necessary for Bitcoin to cross $9,600. If it becomes possible to do that, the next target of the leading digital asset is $11,500 in the short term.
According to the analyst, the price may go upward if it holds the level standing at $9,250. He proposed his short-term speculation with a chart conforming to its logic of prediction for BTC. Moreover, he goes on to explain that if it gains the position above $10,250-10,500, the figure of $11,500 will become an easy path to attain.
Crucial level held and we are back in a narrow range.
As long as $9,200-9,250 holds, I suspect continuation.
Next job; breaking and flipping $9,550-9,600. If we do, the grind towards the highs can start.
Acceleration above $10,250-10,500 towards $11,500. pic.twitter.com/NQgxTM0IRF
— Michaël van de Poppe (@CryptoMichNL) June 18, 2020
Another reason why Bitcoin should go high is the unusual increase in the money supply. The chief economist at Tressis, Daniel Lacalle, compares bitcoin with the global money supply and emerging market currency index.
In this chart, it clearly shows that the money supply has surged by nearly 70% since December 2017 when Bitcoin touched an all-time high value.
Not only the Fed has injected surplus money to sustain the economy, but the central banks of other countries have also increased their money supply to edger economic conditions prevailing throughout the world.
Bitcoin vs global money supply and emerging market currency index.#Bitcoin #cryptocurrencies pic.twitter.com/y3xUk3vOCT
— Daniel Lacalle (@dlacalle_IA) June 18, 2020
The burden on the world economy has forced many investors and traders to believe in Bitcoin as a hedge against inflation. Crypto trader Henrik Kugelberg said,” I am personally not negative on bitcoin and my view is based on several ingredients that have not changed or improved my outlook.”
Some crypto advocates have concerns over Trump’s stimulus plan. For example, the managing partner at Cryptanalysis Capital, George Clayton, said:
“A $1 trillion stimulus plan to build bridges, roads and rural 5G broadband that the Trump Administration is mulling over is perhaps the only piece of major legislation that stands a chance of passing both houses of Congress.”
“It would be far more inflationary than the $500 billion in aid funneled to corporations that seems to be propping up stock markets,” he added.