The major BTC bull Tom Lee is in the Bitcoin news again for giving a new prediction. As Tom Lee estimates, the benefit of BTC now will eventually push the cryptocurrency to a new price at $27,000 this year.
Lee spoke to Yahoo! Finance on February 4, the co-founder of Fundstrat Global Advisors said that one bullish technical factor made him “really optimistic” about Bitcoin’s short-term potential.
“Notably in January — January is usually a week month, it was a great month for Bitcoin, up 26% — but it also recovered its 200-day moving average,” Lee estimated.
“That’s a big deal as you know, as anyone who’s a trend follower knows — when you’re back above your 200-day, you’re back in a bull market. Whenever Bitcoin breaks back into its 200-day, its average six-month gain is 197%.”
The 200-day moving average has traditionally represented a major area of resistance for the markets. Bitcoin gained closer to 30% in January and as Tom Lee estimates, it may continue its growth to hit the recent highs around $9,450.
For some other analysts, the cryptonews show that 2020 will have larger returns in store for BTC investors compared to last year, despite the fact that 2019 delivered gains which were 300% at one point.
Like many, Lee highlighted that the May block reward halving was the “catalyst” for Bitcoin’s price expansion. Not only this event reduced the new Bitcoin supply by 50% – it also took the inflation rate below that of both gold as well as the 2% inflation target of the United States Federal Reserve.
Tom Lee estimates that with the current flow, Bitcoin (BTC) is on a good way to securing five-digit gains. However, many analysts noted that his views are unrealistic at this point. Last month, Lee said that the halving event was crucial and nonetheless not “priced in” which is why he believes that Bitcoin’s 2020 gains will top out at 100%.
This largely confronts the new mark that Tom Lee estimates, showing that the dominant cryptocurrency has a lot of room to grow in terms of profits. Still, the rest of the market must react in the same way and prove that Bitcoin is not alone when it comes to gains, further developments and the release of new features.
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