Famed investor Michael Novogratz tweeted on Monday that bitcoin will soon take out the $10,000 resistance level, telling his followers, "Get on the train." Novogratz said that turmoil spreading throughout the US only adds to the bitcoin narrative, with budget deficits likely to increase as municipalities grapple with depressed business due to the coronavirus pandemic as well as a surge in looting and rioting due to the George Floyd protests. Novogratz isn't the only famed investor bullish on bitcoin. Hedge fund manager Paul Tudor Jones recently detailed his bullish views on bitcoin, as well as billionaire investor Chamath Palihapitiya. Visit Business Insider's homepage for more stories . Longtime bitcoin bull Michael Novogratz of Galaxy Digital tweeted on Monday that bitcoin will soon take out the $10,000 resistance level and traders should get on board.
"$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it's the opposite of balanced. When 10k goes it will move fast. Get on the train," Novogratz tweeted.
A few hours after the tweet, bitcoin did in fact break above $10,000.
In technical analysis, a coil is also known as a symmetrical triangle charting pattern. The pattern tends to be a continuation pattern of a former trend and occurs when a security makes a series of lower highs and higher lows.
Ten thousand has been an important resistance level for bitcoin, and a sustained breakout above that level would generate price targets with as much as 40% upside.
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Novogratz said he thinks that turmoil spreading throughout the US only adds to the bitcoin narrative, with budget deficits likely to increase as municipalities grapple with depressed business due to the coronavirus pandemic as well as a surge in looting and rioting due to the George Floyd protests.
Novogratz isn't the only institutional investor who is bullish on bitcoin.
In May, hedge fund manager Paul Tudor Jones revealed in a client letter that his fund was long bitcoin in an effort to hedge against potential inflation.
Meanwhile, billionaire investor Chamath Palihapitiya said he was long bitcoin as a hedge against potential deflation.
While there are differing reasons for bitcoin bulls' investment rationale, they all tend to agree on one thing: Bitcoin is a decentralized security that has limited supply and can serve as a hedge against central banks' unlimited money printing policies.
A bearish view on bitcoin was recently published by Goldman Sachs, which detailed five reasons why investors should avoid the digital cryptocurrency.
Bitcoin surged 8% to $10,210 on Monday night. Year-to-date, bitcoin is up 40%.