Bitcoin [BTC]’s $7000 price breakout decoded by Fundstrat’s Tom Lee

On July 17th, during an interview with CNBC Fast Money, Thomas Lee, the Head of Research at the market strategy and research firm Fundstrat has provided an insight into the Bitcoin price breaking above the $7,000 mark.

Tom Lee used a chart to indicate the 200-day moving average for Bitcoin for the last one year. He then showed that currently, Bitcoin is trading 30% below the 200-day moving average of last year which is a positive sign.

According to his observations, the same has happened a few times since 2009. The first time it happened was in October 2011, and then in December 2014. He added:

“…why is that significant, well no.1, Bitcoin bottomed within a month here [October 2011] and it bottomed within a month here [December 2014] but I think it tells us something even more important. Not the next month, it’s telling us that if you look for in the next six months you’re gonna do pretty well.”

Recently, experts from all the ends of the cryptocurrency space have lent their opinions on the Bitcoin surge. Charlie Lee, the Managing Director of the Litecoin Foundation had tweeted a post regarding the connection between Litecoin and Bitcoin. He wrote:

“There will be at most 21 million bitcoins in existence. There isn’t even enough BTC to go around for EVERY millionaire to own one. So before you buy any other coin (LTC included), try to own at least 1 BTC first. Once you have 1 BTC, buy all the shitcoins you want!”

Following this, Charlie posted a tweet, jokingly implying his role in the Bitcoin price surge.

Charlie Lee on BTC price surge | Source: Twitter

Charlie Lee on BTC price surge | Source: Twitter

David Solomon was announced as the new Chief Executive Officer of the leading global investment banking firm Goldman Sachs. Last month, he had stated that Goldman Sachs is planning on adding Bitcoin and other cryptocurrency services to its portfolio. This is also a speculated contributor of Bitcoin price surge.

On the question of whether the crypto-market has entered its bull phase, the popular cybersecurity pioneer and crypto-advocate, John McAfee tweeted:

“More Bitcoin – $1,000 increase in one week. Is this the bull market? I have no clue. 10 such increases in succession and I will consider it Bull. In the meantime, know this: The Bull Market IS coming. And when it does, it will make the eruption of Krakatoa seem like a Meerkat’s burp.”

At press time, Bitcoin price is taming the bull at $7413.49 with a market cap of above $127 billion. It has achieved a price surge of 10.32% in the past 24-hours at a trading volume of over $6 billion.

Bitcoin's 1-day price chart | Source: CoinMarketCap

Bitcoin’s 1-day price chart | Source: CoinMarketCap

Pdvsky, a Redditor commented:

“Hey don’t worry, it will down and then it will go up and eventually down again only to then go up and finally down until you realize there’s no logic. But by the end of the year it will hit 1 BILLION DOLLARS.”

Dismantech, another Reddit user commented:

“Just traders and whales taking the money from people who want to go long and are ready to fomo in in a bear market. Give it a few days and you’ll see the dump. A spike like this one today doesn’t come from organic growth.”

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