Founder of Fundstrat Global Advisors, Tom Lee, predicted that Cryptomoda prices will reach new record highs by 2020. Lee made his comments during an interview with CNBC on April 28.
In the interview, Lee predicted that Bitcoin (BTC) has not completed its upward movement and will likely reach new record highs around 2020, based on "11 signs that historically only happen in a bull market." So Lee reiterated his earlier prediction earlier this month that "a bull market is likely to begin."
Lee explained that three of these 11 signals – blocking chain, technical indicators and transaction volumes – indicate that winter encryption has come to an end. In January, Lee's team noted that blockchain trading volumes were positive at an annual rate, while the second signal appeared in April, when the BTC closed above its 200-day moving average.
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The third sign, the volumes traded, is related to over-the-counter brokers, who are "really important in terms of how institutional investors trade the crypto-currencies." According to Lee, activity levels based on the number of customers increased by 60% to 70%.
"I think they are seeing signs that the fundamentals are improving, the technician is improving, and now there is a real activity, essentially, the cryptomaniac hunters. […] So I think […] a move of 2.5 standard deviation for the bitcoin would lead to $ 14,000. I'm not saying that's where you're going, but that's the magnitude of the movement that would be an update. "
Do not stop reading: Fundstrat expects 2019 to bring incremental improvements that support higher crypt prices
In early April, Lee said the "Bitcoin Misery Index" (BMI) – which Lee designed to inform investors of how "miserable" BTC holders are based on price and market volatility. coin- has recently reached its highest value since June 2016. He suggested that this could be a mixed signal, noting that "the main thing is that if the BMI reaches 67, it is further evidence that the Bitcoin bear market is likely ended at USD 3,000 "
In February, Fundstrat launched its crypto-currency perspective for 2019, describing incremental improvements that are supposed to support higher crypto-currency prices. Fundstrat said the general interest in crypto-coins could be spurred by Binance's recent decision to support cryptic purchases, along with rumors that big companies like Bitfury and Bitmain might consider making initial public offerings.
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