On April 28, long-term bullish bitcoin analyst Tom Lee believes that although bitcoin prices have fallen on Friday, signs related to blockchain, technical indicators and trading volume indicate that bitcoin prices are expected to continue to rise in the future, even Enter the bull market. In addition, the fluctuation of Bitcoin is 2.5 times that of the S&P 500 index, from which it can be calculated that Bitcoin is expected to return to the high of $14,000.
Analysts say Bitcoin is expected to continue to rise, or has entered the bull market
In an interview, Tom Lee said Bitcoin fell earlier last Friday because the market was worried about another legitimacy called the Tether digital currency. He believes Bitcoin will continue to rise and may even have entered the bull market.
In 2017, Bitcoin performed well, and in the short three months from September to December, it soared from around $2,975 to $19,511, which shocked the financial market. However, Bitcoin subsequently plunged due to the bursting of the bubble. It went on a bear in 2018 and rebounded after hitting a low of $3,316.04 on December 15. It is currently around $5,180.
Tom Lee pointed out: “For Bitcoin, 2018 is a bad year, and it is in a serious bear market. We published an article this week, emphasizing the 11 signs that only the bull market will appear in history. Therefore, I think there is more and more evidence that Bitcoin has entered the bull market.”
These 11 signs indicate that the winter of cryptocurrency is over. Tom Lee’s three most optimistic about Bitcoin are related to blockchain, technical indicators and trading volume.
The first sign appeared in January of this year, when his team noticed that the blockchain transaction volume has increased year by year. Blockchain is a technique used by some people to buy and sell bitcoin. Tom Lee explained that this boost benefited from the turmoil in Venezuela and Turkey. People in these two countries lost confidence in their currencies and may switch to Bitcoin as an alternative currency.
He said that the supply chain trading activities in these two countries have increased by nearly 30%, so it is very meaningful. People say they no longer believe in their currencies and banks, and they want to start using bitcoin, which is the real reason for the soaring supply chain transactions.
The second sign appeared in April, when Bitcoin successfully closed above the 200-day moving average.
The third sign comes from Fundstrat’s investigation of over-the-counter brokers. Tom Lee said the role of these traders is very important in how institutional investors trade cryptocurrencies. The interviewed brokers told Fundstrat that the level of activity based on the number of customers has increased by 60% to 70%, and the volume of transactions per customer has surged.
Tom Lee believes that there are signs that the fundamentals and technical aspects of Bitcoin are improving, and the activities of Bitcoin holders are now truly active.
The other eight bitcoin bullish signals include supply contraction; Fundstrat’s bitcoin pain index is turning positive; bitcoin bulls agree that bitcoin has bottomed out; recently Bitcoin has a “golden cross”, meaning that the 50-day moving average exceeds 200-day moving average and other conditions.
Tom Lee said that all these signs indicate that Bitcoin has not climbed, and these catalysts are “very likely” to push Bitcoin to a record high by around 2020.
Bitcoin is expected to rise to $14,000
In March of this year, Tom Lee predicted that Bitcoin would usher in a bull market in 2019. He added that Bitcoin’s volatility is about 2.5 times that of the S&P 500, which may help push up Bitcoin. One thing to keep in mind is that no matter when the S&P index fluctuates significantly, this almost always leads to large fluctuations in Bitcoin later this year.
So Tom Lee said: “The standard deviation of the measurement of bitcoin volatility is 2.5 times that of the S&P 500 index. Based on the increase in US stocks since the beginning of the year, this will push up the price of Bitcoin to $14,000. I am not It must be said that this is the future direction of Bitcoin, but there is such a catch-up situation.”
Last Friday, due to the overall weakness of the cryptocurrency market, bitcoin prices fluctuated sharply, with a settlement price of approximately $5,100 per piece. In an interview last Friday, Lee pointed out that Tether’s problem “has little impact on Bitcoin,” because most people choose to do more than just because they don’t want to do more bitcoin.
Source: Li Kai Kai | Nuclear Finance
Disclaimer: This Article is based on individual opinion written by the author from the adapted source. This article is no way represent any form of investment advises or investment strategy. Readers are advised to seek their own due diligence when investing in cryptocurrency and seek authorized and licenced investment professional instead.