Bitcoin (BTC) is prepared for average profits of nearly 200% in the next six months, one of its best-known supporters has told the regular media.
Speak to Yahoo! Finance on February 4, Tom Lee, co-founder of Fundstrat Global Advisors, said that a bullish technical factor in particular made him “really optimistic” about Bitcoin’s short-term potential.
“Particularly in January – January is usually a week, it was a great month for Bitcoin, an increase of 26% – but it also recovered its 200-day moving average,” Lee explained.
“That’s a big problem as you know, as everyone who is a trend follower knows – when you’re above 200 days, you’re in a bull market again. Every time Bitcoin falls back in its 200 days, its average gain is six 197%. “
The 200-day moving average has traditionally been an important resistance area for markets.
Bitcoin rose even closer to 30% in January before continuing its growth to reach recent highs around $ 9,450.
For some analysts, the most successful January of the cryptocurrency since 2013 is a sign that the next long-term bull cycle is already starting.
Lee also considered 2020 a greater return for BTC investors than last year, despite 2019 yielding profits that at one point exceeded 300%.
Like many, he emphasized the halving of May’s block pay as a “catalyst” for Bitcoin’s price expansion. Not only will the event reduce the new Bitcoin offer by 50%, it will also bring its inflation rate below that of both gold and the US Federal Reserve’s 2% inflation target.
A historically accurate price-forecasting model, Stock-to-Flow, predicts that the halving by the end of 2021 will cause a bullrun to around $ 100,000.
Lee said last month that the half-event was not “priced in” after all. At the time, before the moving average crossover, he said he envisioned Bitcoin’s 2020 profit to reach 100%.