Tom Lee, the Managing Partner at Fundstrat Global Advisors, believes that both the fundamental as well as the technical aspects of Bitcoin will continue to move positively throughout the year 2020.
Bitcoin’s Strong Bullish Move
The new year 2020 seems to be recorded an impressive year for Bitcoin. In the month of January, the largest cryptocurrency started at around $7,200 and then jumped with almost 30% to the current level of about $9,400. This is widely being recognized as the 2nd best January in Bitcoin’s price history, trailing to that of 2013’s when the digital currency surged with over 50%.
With such an impressive start, the crypto community speculates whether it is a sign of a major bull run, which Tom Lee supports relying on a few technical aspects –
“Moving above the 200-day [moving average] is validating that Bitcoin is back in a bull market.”
As indicated by the research compiled by Fundstrat that Lee works for, Bitcoin has delivered high returns in 80% of all situations when it was above the 200-day M.A.
Fundamentals Back Up Bitcoin’s Price Move
Even though Tom Lee makes point of the importance of technical analysis, he simultaneously talked about the fundamentals which could back up the leading cryptocurrency’s price rally. On being asked, whether he is still positive about the bull run on Bitcoin, he said –
“Yes, 2020 should be great for Bitcoin. Because you got, number one the Halving happening – the block reward for miners getting cut in half, that’s a good supply-demand change.”
“I think that last year the White House killed the Bitcoin rally with their opposition, but with the presidential election cycle underway, it’s not going to be in the headlines and that’s bullish for Bitcoin. And then with the geopolitical tensions in the Middle East, I think that is good for crypto.”
In reality, those reasons Lee recorded come in support for BTC amid 2020.