Fundstrat: Bitcoin (BTC) for the stage "Pretty Big Recovery" from 2019


Why Bitcoin could go higher, according to Tom Lee

Bitcoin (BTC) has risen above $ 5,000 a few weeks ago, and Tom Lee, head of research at Fundstrat Global Advisors, wants to get back into the crypto space. The notable analyst in the industry, known for pricing predictions made in 2017 and early 2018, said in a recent segment of CoinTelegraph that BTC is likely to have a "fairly large recovery" over the next eight months, which is why permabull Think that. .

First, he looked at an indicator that established the company, the Bitcoin Misery Index (BMI). Fundstrat's co-founder claimed that the Misery Index, which weighs a number of factors to discover the sentiment of Bitcoin's investors, reached a reading of 89 (very happy) on April 2, when the BTC exceeded $ 5,000.

This is the highest reading since June 2016, and may indicate that Bitcoin's overall bullish behavior is on the horizon. As Lee explains, since 2011, a misery reading of more than 67 came only during rising markets. However, when Misery peaked above 67, the BTC, on average, fell 25%, with investors seeking profits. The Fundstrat executive can make it clear that, even if a downgrade is in the offing, Bitcoin is more likely than not to see its one-year trend end up at $ 3,000.

Then Lee looked at the fact that the BTC exceeded its 200-day moving average, which stands at around $ 4,600. As the analyst explains, "In any market, people tend to think that an instrument / asset is in a positive trend when it is above its 200 days. This means that Bitcoin's recovery is occurring faster than we expected, and that the price recovery cycle will be no different from the past.

Expanding on this thought, Fundstrat's de facto command figure explains that with the reward of the Bitcoin block fast approaching, the levels of investment that the underlying space has seen over the past 24 months, the strong fundamentals (network activity in terms of transactions and rates) and with the relative and insignificant nature of the cryptomoedas ecosystem, he believes that the BTC could easily recover its high of $ 20,000 and potentially even overcome it.

Is Bitcoin's fair value at $ 14,000?

So sure, the BTC is likely to get higher from here, but where exactly could it go in the short term? Although not predictable, Tom Lee says Bitcoin's current fair value is around a $ 14,000 drop, which means that a move to that level would not be unprotected by fundamentals and could be entirely possible. Here's why.

As reported by Ethereum World News on an earlier date, Lee commented that if Bitcoin follows the recent action of the S & P 500 within 2.5 standard deviations, in which investors are looking for more risky assets such as crypto-coins, BTC could reach $ 10,000. In another message, Lee suggested that in much of the history of cryptomidea, BTC was evaluated at 2.5 times the cost of the mine. With Fundstrat estimating that this point is in the region of $ 5,500, the $ 14,000 price forecast has been extrapolated. It happens only a few weeks after Lee said that up to $ 25,000 was "fair" for encryption.

Title Image Courtesy of Icons8 Team Via Unsplash 


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