Almost out of nowhere, Bitcoin (@XBT) is leading a rally in cryptocurrencies.
The move began yesterday around 6:30 a.m. ET, apparently because some bearish traders reversed downside positions. Other tokens including Ethereum (ETHUSD), Bitcoin Cash (BCHUSD) and Litecoin (LTCUSD), which trade outside the futures market on separate exchanges, quickly followed.
Technicians eyed a breakout through a declining triangle that emerged in recent weeks. They pointed to flatline support around 6500 on CFE’s Bitcoin Futures (@XBT). That zone held, while the falling trendline along the March peaks was broken.
Some established bulls on Bitcoin cheered the move. Thomas Lee of Fundstrat, for example, repeated his call for a rally to $25,000 by yearend.1 That’s about triple the cryptocurrency’s level today. Another investor, Bill Baruch, targeted a more modest run to $10,000.2 Meanwhile, long-term holders at Draper Associates were most bullish of all, looking for a monster run toward $250,000 by 2022.3
Thursday’s 11 percent spike in @XBT was the biggest since since February 20. It comes amid speculation over Bitcoin investors owing taxes on gains in 2017, when prices appreciated about 2,000 percent. While some bears expected liquidations of positions to pay Uncle Sam, other reports suggest few holders are reporting their profits.4
Stocks associated with the Crypto space also jumped, led by Marathon Patent (MARA).
1. CNBC: Bitcoin will hit $25,000 by the end of 2018, says noted crypto bull Tom Lee. 4/12/18
2. CNBC: The bitcoin bounce may have legs: Crypto bull makes the case for a run back up to $10,000. 4/12/18
3. Marketwatch: Bitcoin will rise to $250,000 by 2022, says Tim Draper. 4/13/18.
4. CNBC: Hardly anyone is paying taxes on their bitcoin gains as filing deadline nears. 4/13/18.