Thomas Lee, Fundstrat Global Advisors’ managing partner and head of research, known in the crypto-space for his optimistic Bitcoin [BTC] price predictions, opined that market sentiment has shifted in favor of the top cryptocurrency.
At the close of the most successful week for the collective cryptocurrency market in 2019, which saw Bitcoin propel over $5,000 and amass its highest daily gain in over a year, Lee weighed in on the cause for it all.
In an interview with Bloomberg TV, the Bitcoin bull rebuffed the remarks made by many analysts stating the price rally was based on jokes of an ETF or a random spurt in the market. Lee state that the rally was based on “true buying,” propelling the coin’s price above its 200-day moving average, which stood at just over $4,600 prior to the surge.
“I think there’s a lot of significant things that happened, this past week with crypto. But the most important was that Bitcoin made a move that now looks like it was based on true buying.”
Lee referenced the crypto decline of 2018 that saw the collective market cap drop from over $800 billion in January to almost below $100 billion at the end of the year. In light of the past year’s crypto-winter, the recent “bull-trend,” as Lee put it, will have a significant effect on the overarching market sentiment.
The Fundstrat executive added what many crypto-proponents have longed to hear:
“An instrument that can go back to its 200-day and hold it, is now back in a bull-trend. So, I think, sentiment has to change because Bitcoin is now in a bull-market.”
When asked about the precursors to the Bitcoin price-upswing, Lee highlighted three key causes that were building up since the beginning of the year. Firstly, the decline of the most prominent fiat currency in the market, the US Dollar was a developing “tailwind” for the BTC price rise.
Lee highlighted the emerging Chinese market, which he described as being “bullish for crypto,” given the dominance of miners in the country. Based on BTC’s historic prices, announcements coming out of Beijing have a significant impact on the crypto-market.
He shed light on the return of the “OGs” or the “original holders” of Bitcoin, who are “starting to accumulate again.” Lee added that these hodlers who sold high during early 2018 as the BTC market was still soaring, are coming back into the market.
A report that referenced the crypto-OTC shop Cumberland’s bids for Bitcoin was also mentioned by Lee. The report revealed that Cumberland saw over 10 differing bids worth over 1000 BTC, each within an hour on Monday, April 1. Lee backed the report, adding that it was not “short covering,” but “real money being put to work.”
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