Bitcoin’s 2020 positive price movement will continue, according to the Managing Partner at Fundstrat Global Advisors, Tom Lee. He believes that both the fundamentals and the technical aspects of the largest cryptocurrency are intact to deliver excellent results throughout the whole year.
Bitcoin Enters A Bull Run
Bitcoin has recorded a seriously impressive month, starting at around $7,200 and jumping with 30% to the current level of about $9,400. This is the second-best January in its history, only trailing to 2013 when it surged with over 50%.
The cryptocurrency community speculates if this could a sign of a major bull run, and Tom Lee supports that notion, relying on some technical aspects:
“Moving above the 200-day [moving average] is validating that Bitcoin is back in a “bull market.”
Moreover, he refers to research compiled by the company that he works for – Fundstrat. According to it, in 80% of all situations when Bitcoin was above the 200-day M.A., it has delivered high returns of approximately 193%. On the contrary, when BTC was below the same technical feature, its ROI was substantially less – around 10% gains.
Fundamentals Play A Major Role
Even though Lee emphasizes the importance of the technical analysis, he also talked about the fundamentals that could back up Bitcoin’s price rally. When asked if he is still bullish on the top cryptocurrency by market cap, he said:
“Yes, 2020 should be great for Bitcoin. Because you got, number one the Halving happening – the block reward for miners getting cut in half, that’s a good supply-demand change.
I think that last year the White House killed the Bitcoin rally with their opposition, but with the presidential election cycle underway, it’s not going to be in the headlines and that’s bullish for Bitcoin. And then with the geopolitical tensions in the Middle East, I think that is good for crypto.”
Indeed, all of those reasons he listed come in support for Bitcoin during 2020, as Cryptopotato reported yesterday.
The Bitcoin Halving has historically skyrocketed the price, even though history cannot be regarded as a valid indicator. Furthermore, with the tension between the U.S. and Iran, and the recent outbreak of the Coronavirus, the traditional markets took hits. At the same time, Bitcoin (and Gold) noted serious spikes, bringing once again the theory that it could serve as a safe haven in tough economic times.
Featured image courtesy of Yahoo Finance
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