Bitcoin charts could be a sea of green within six months says Bitcoin bull, Tom Lee. The Fundstrat Global Advisors Managing Partner and the Head of Research, says this year could bring about a comeback for the most popular cryptocurrency, thanks to favorable macroeconomic trends.
“I think 2019’s a year about repair,” Lee said on CNBC’s Futures Now. “We have a risk-on rally in global markets that’s positive for Bitcoin; it was a headwind last year. And the dollar isn’t surging like it was last year. That’s a headwind that’s gone away”.
This comes after his December remarks about giving up on Bitcoin forecasting. “We are tired of people asking us about target prices,” he wrote in an email to clients. “Because of the inherent volatility in crypto, we will cease to provide any timeframes for the realization of fair value”.
Traders Should Keep An Eye On 200-Week Moving Average
Lee pointed out that bitcoin’s technical indicators are stabilizing, with the digital currency managing to hold above its 200-week moving average, but his his assumption meant looking at the bigger picture.
“The real story is the fundamental one, that bitcoin’s becoming quite useful,” he said. “We’ve seen the launch of digital currencies by not only J.P. Morgan and Mizuho Bank, but also Facebook and some social media companies gearing up. And, of course, in places like Venezuela, where bitcoin’s become very large and widely used, turmoil is causing adoption growth. So I think these are really setting up for a strong year”.
He stated that the Bitcoin Cash hard fork when the Bitcoin price dropped from $6000 to just above $3000, had been detrimental for investor confidence.
“I think it really undermined investor confidence in sort of the dynamics around the market, so I think that bitcoin’s going to spend a lot of time below $6,000 sort of fixing itself”.
Lee told prospective buyers to keep an eye on the 200-day moving average. If Bitcoin maintains its current trading price around $4,000, it’ll cross above its 200-day by August”.