Tom Lee, founder of Fundstrat Global Advisors has stated he believes cryptocurrency prices will hit new all-time highs by 2020.
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In an interview with CNBC, Lee said bitcoin (BTC) will likeley reach new historic highs by 2020 based on “11 signs that historically only take place in a bull market.”
According to Lee, three of the 11, blockchain, technical indicators, and trading volumes, indicate the bottom of the market is likely in.
In January, Lee stated his team noticed trading volumes because positive at an annual rate, while another bullish indicator happened in April, when BTC increased above its 200-day moving average.
Lee stated trading volumes are ““really important in terms of how institutional investors trade crypto.”
“I think you’re seeing signs that fundamentals are improving, technicals are improving, and now there’s real activity by, essentially, crypto hodlers,” said Lee.
“A 2.5 standard deviation move for bitcoin would take it to $14,000. I’m not saying that’s where it’s going to go, but that’s the magnitude of move that would be a catch-up.”
Also in April, Lee’s own “Bitcoin Misery Index” (BMI), which aims to inform how “miserable” BTC hodlers are, recently increased to its highest figure since June 2016.
“The main takeaway is that BMI reaching 67 is further evidence the bear market for Bitcoin likely ended at $3,000.”
In February, Fundstrat released a 2019 cryptocurrency outlook, which mentioned overall interest in the sector may be increased by Binance’s new support of credit cards, along with rumors of an IPO for both Bitfury and Bitmain.