According to Tom Lee who is the co-founder of Fundstrat Global Advisors claims that Bitcoin will see a significant upward price movement in 2019. According to the BTC Permabull who back in the year 2018 predicted that the top-ranked cryptocurrency would end the year trading at $ 25,000, says several market factors have flipped in favor of the cryptocurrency.Mr. Lee expects that the coming years will have positive developments on the institutional side to also play a prominent role in engineering a sustained bull market for BTC in 2019. While speaking to CNBC on Thursday (March 14, 2019), the Fundstrat co-founder and analyst identified a few market indicators that would drive up the price of Bitcoin in 2019.
“I believe this year is all about repair. We have a risk-on rally in global markets that are positive for bitcoin; it was a headwind back in the previous year. And the dollar is not surging like it was last year. That’s a headwind that’s gone away.”
Apart from a weakened U.S.dollar, the Fundstrat analyst says that other technical indicators are beginning to stabilize as the year progresses. In a note to investors at the start of 2019, Lee itemized important macroeconomic trends that would constitute a favorable tailwind for upward BTC price movements in 2019.
Lee has a history of predicting bull runs for BTC hinted that the top-ranked cryptocurrency could potentially begin a sustained upward price rise in August 2019. According to Lee, Bitcoin would have crossed its 200-day moving average (MA) by that time, assuming it maintains its present price levels in and around the $4,000 region.
Accordingly, Lee said, successfully the 200-day MA could see Bitcoin recover from its mid-November 2018 price capitulation which saw its price fall from $6,000 to $3,000. At that time, a “civil war” between rival Bitcoin Cash forks caused panic in the market with cryptos facing another downward curve.
However, Lee expects that BTC can undo most of that damage and begin to see significant gains by the summer of 2019. Earlier in the year, Justin Sun, the CEO of TRON predicted that BTC would spend most of the year trading in a tight range between $3,000 and $5,000.
During an interview, Lee highlighted some imminent positive developments in the institutional arena that will contribute to ensuring a bull market scenario for Bitcoin.
In a statement, Lee stated that “Fidelity’s launching digital custody. Bakkt is going to launch an exchange. We already have seen some high-profile endowments, and pension funds actually invest new money this year. So, I think, as an asset class, it’s still the earliest days, but I think it’s too glib to dismiss the macro.”