Tom Lee is well known for his rather than optimistic forecasts of Bitcoin prices. This time, he sustained in an interview with CNBC with 7 reasons.
In an interview with CNBC, Bitcoin Dowager and Fundstrat Global co-founder Tom Lee said Bitcoin will reach new heights by 2020, clearly exceeding the $ 20,000 mark. Lee is known for his inflated price forecasts, but he grounded them with 7 important reasons for him.
Bitcoin Half is Coming
Every four years, the Bitcoin Block Reward is reduced by half to meet the strict offer of 21 million bitcoins. This gives Bitcoin an artificial deficiency, creating an inherent value. The next Half will take place on the 23rd of Mail 2020. As past experience shows, the price of Bitcoin rose one year before this event. Tom Lee hopes the offer shrinks, and the next fall of Bitcoin Rally will not work.
The bitcoins trading volume almost hit a record high
As already reported, Bitcoin's trading volume hit again the record volume. Lee points to an important moment in January 2019, when turnover returned to positive territory compared to the previous year. Lee mentions the growing acceptance of Bitcoin in Venezuela and Turkey.
"Taking only these two countries contributes about 30% of the increase in activity in the chain, so it's significant. People say," Look, I do not trust the local currency anymore. I do not trust banks either. I'm going to use Bitcoin. "And that's why on-chain volume is increasing."
Bitcoin left the moving average of 200 (MA200) behind
Bitcoin surpassed the 200 (MA200) moving average earlier this month, which is a strong bullish indicator. The last time it happened in October 2015, and then Bitcoin launched a two-year bull run.
Fundstrat's Bitcoin misery index is positive
The Bitcoin Misery Index (BMI) measures investor sentiment through a combination of volatility, price and trading activity of Bitcoin. In April, this peaked in mid-2016. Lee sees this as a sign that a bull market is brewing because high levels are only attained during bull markets. However, he confessed that Bitcoin had to accept a 25% drop the last time the IMC got to that point.
The Bitcoin OTC market increased from 60% to 70%
According to a fundraising survey, institutional investors are entering the Bitcoin market via OTC. These are off the main exchanges and account for half of Bitcoin's total turnover. Lee estimates it rose from 60% to 70%, which is a clear sign that too much money is flowing into the market.
"Really important in terms of how institutional investors switch encryption."
Conclusion – Bitcoin hit bottom
Lee points to a handful of "original" Bitcoin bulls who think we've seen the lowest prices in this Bitcoin story. He repeatedly states that Bitcoin whales, who brought money from the market in early 2018, now invest their money back in Bitcoin.
Bitcoin Golden Cross
Finally, Lee refers to the technical indicator "Golden Cross". This is another positive indicator that traditionally confirms a surge outbreak. He questioned his followers on Twitter, of which 43% considered the "Golden Cross" positive.