Photo: Marco Verch / Flickr
Bitcoin bull and leading Fundstrat analyst Tom Lee is known to be one of the main optimists in the crypto sphere.
And now in his recent interview, he explained why he is still bullish on cryptocurrencies despite the challenging previous year and predicted what we could expect from Bitcoin and other cryptos in 2020.
Though last week the cryptocurrencies started losing their value after there surfaced controversial news about Tether, Lee is absolutely sure that it is just a temporary situation. He believes that bullish trends will soon gain the upper hand.
“Last year was a terrible year for crypto, a massive bear market, and we published a piece this week just highlighting … 11 signs that historically only take place in a bull market. So I think the evidence is mounting that there’s a bull market,” explained Lee.
Lee noted that some of these 11 signs have been already observed. The first sign was noticed in January when on-chain transactional volumes turned positive in comparison with the previous year.
This growth was supported by such countries as Venezuela and Turkey where people have little faith in their national currencies and are considering a possibility to use BTC as an alternative. These two countries are close to 30% of the increase in on-chain activity which is a rather significant figure.
The second sign showed up in April. Bitcoin reached the level above its 200-day moving average which is a widely-known and widely-applied technical indicator of a bullish market.
The third sign evidence of positive trends is based on the results of a Fundstrat survey of over-the-counter brokers who are “really important in terms of how institutional investors trade crypto” according to Lee. Brokers noted a 60% to 70% increase, in activity/number of clients and trading volume per client.
The list of other signs of the bullish market also includes shrinking supply; changes in Fundstrat’s Bitcoin Misery Index; and a situation the 50-day moving price average overtakes the 200-day one.
Bitcoin Price
Lee is known for his extremely optimistic forecasts. He predicted that in 2018 Bitcoin would reach $25,000. Nevertheless, later he said that it would reach $22,000 instead, then lowered his forecasts to $20,000 and $15,000.
Though this forecast hasn’t translated into life, he still tries to convince that the best days for Bitcoin are still in the future.
However, at the end of the previous year, he also stated that his company would not work with price predictions anymore but would continue to analyze the influencing factors.
He often repeats that Bitcoin is undervalued which is partially related to the fears of potential global economic collapse and possible negative consequences for investors.
Given all the factors that can be observed these days, Tom Lee believed that Bitcoin is ready to reach new highs in 2020.
