New All-Time Highs For Bitcoin By 2020 Are Likely – Fundstrat Founder Tom Leebr>
Tom Lee, founder of Fundstrat Global Advisors, said that he believes that crypto winter is already over and bitcoin will hit new historic highs by 2020.
In an interview with CNBC Futures Now, Lee predicted that the price of bitcoin will eclipse the previous $20,000 mark in the coming 20 months.
“Last year was a terrible year for crypto, a massive bear market, and we published a piece this week just highlighting … 11 signs that historically only take place in a bull market,” Lee said. “So I think the evidence is mounting that there’s a bull market.”
According to Lee, three out of those 11 signs — blockchain, technical indicators and trading volumes – have already been observed. The first sign came in January, when Lee’s team noticed that trading volumes on the blockchain turned positive year over year. The second sign came in April, when bitcoin closed above its 200-day moving average, a widely accepted technical indicator of bullish momentum. The third sign stemmed from a Fundstrat survey of over-the-counter brokers, who Lee said are “really important in terms of how institutional investors trade crypto. Lee said that activity levels based on the number of customers increased by 60% to 70%.
“I think you’re seeing signs that fundamentals are improving, technicals are improving, and now there’s real activity by, essentially, crypto hodlers,” Lee said. “So I think … 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.”
Lee is famous for inflated bitcoin price predictions. Last year, he predicted that the price of bitcoin would end 2018 at $25,000, a forecast that hasn’t translated into life.