Per a top analyst, however, the cryptocurrency’s already jaw-dropping surge is not done yet, citing a simple technical analysis suggesting prices will soon surmount $20,000 for the first time ever. What’s more, the analyst expects this to happen in the next six months.
Bitcoin Could Soon Surge Past $25,000
Speaking to Yahoo Finance, Fundstrat Global Advisors’ co-founder Tom Lee said that Bitcoin could extend its gains from the past few months into an even bigger rally, noting that the price of the cryptocurrency has surmounted the key 200-day moving average for a number of days:
“Moving above the 200-day [moving average] is validating that Bitcoin is back in a ‘bull market’. Whenever bitcoin breaks back into its 200-day, its average six-month gain is 197%, so we’re sort of talking about a levitation taking place.
A 197% rally from where Bitcoin crossed above the key moving average would equate to a price just above $26,000.
For those unaware, the 200-day moving average is seen across financial markets as a level that indicates an asset’s long-term directionality; when prices are above the level, it is in a bull market, and when prices are under it, the asset has dropped into a bear trend.
Fundstrat also has some fundamental reasons to believe Bitcoin will appreciate this strongly in the coming year.
After a host asked about his outlook on Bitcoin, the industry analyst asserted that he remains bullish on BTC for 2020, citing three main factors:
The upcoming 2020 Presidential Election in the US, which he claims will decrease regulatory pressure on Bitcoin
The upcoming Bitcoin block reward reduction, known as a “halving,” that will decrease the inflation rate of the asset by 50%;
The rising geopolitical tensions, especially in Iran.
Anecdotally, Lee added that his firm has been seeing an increasing interest from clients regarding cryptocurrency. While Fundstrat is a research firm, the growing level of crypto-centric interest from its clients would suggest that there is a growing investment demand for Bitcoin.
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Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.