- Bitcoin broke its 200-day moving average (DMA), which was an important milestone for the coming year.
- Tom Lee expressed his belief that Bitcoin’s price will continue to soar, especially after the ongoing period of increased profitability since January.
- Tom Lee revealed that an analysis by Fundstrat researchers had resulted in the conclusion that the probability of winning while trading Bitcoin above the 200DMA is an impressive 80%.
As the first month of the new year ends, and the crypto industry begins analyzing trends to set the tone for the rest of the months this year, Bitcoin’s excellent performance has been the talk of the town. The market rank number one cryptocurrency predicted to put up a great show in the new year, but it has already exceeded expectations.
In January, the most famous cryptocurrency broke its 200-day moving average (DMA), which was an important milestone for the coming year. As analysts and experts of the industry continue to “predict Bitcoin’s future movements, here is what Fundstrat’s Tom Lee said on Bitcoin’s run.
Tom Lee expressed his belief that Bitcoin’s price will continue to soar, especially after the ongoing period of increased profitability since January. In an interview with Yahoo! Finance, Tom Lee indicated that previous trends indicate that Bitcoin brings in excellent profit right after every time it broke the 200 DMA.
— Thomas (Tom) Lee (not the drummer) FSInsight (@fundstrat) February 5, 2020
He further exclaimed that he expects bitcoin prices to skyrocket by up to 200% in the coming days. He added that previously, such an event increased the average of six-month profit to 197%. “Every time Bitcoin returned to its 200DMA, its average profit for six months reached 197%, and therefore we can talk about take off,” He explained.
Moreover, Tom Lee revealed that an analysis by Fundstrat researchers had resulted in the conclusion that the probability of winning while trading Bitcoin above the 200DMA is an impressive 80%.
Lee further spoke about the impact of geopolitical events on the price of Bitcoin. He reiterated his position on its price raise by stating that he expects much higher profits for Bitcoin in the wake of the global epidemic caused by the novel coronavirus.
He further attributed some amount of Bitcoin’s January success to the global health emergency, especially in late January. He noted that such emergencies, along with geopolitical tensions, push people and governments towards the use of assets like Bitcoin.
Tom Lee had previously predicted that the leading cryptocurrency has “embarked on a steady growth path” on his official twitter account. He had further claimed that 2020 would be a successful year for Bitcoin in late January.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.