It is difficult to make a Bitcoin forecast, meaningful indicators point to an early increase of well over 100%. Not only the Bitcoin bull Tom Lee is of this opinion, well-known crypto traders show that Bitcoin is facing another strong rise.
Tom Lee: Bitcoin increases by an average of 197% according to the pattern
Crypto bull Tom Lee recently interviewed Yahoo Finance and said Fundstrat is optimistic about Bitcoin this year. In addition, he is not only optimistic about Bitcoin, but generally about crypto. In his opinion, the long bear market had already washed out all bad projects, so only good projects would survive. He also bases his opinion on the extremely bullish indicator, the 200-day moving average.
The month of January 2020 was already a very successful month with a 26% profit, unlike the years before. For many analysts, this was a sign of a bullrun.
3 reasons why Bitcoin will increase by over 100%
The analyst and crypto bull Lee already posted on January 10 his reasons why Bitcoin will be very successful in 2020.
1. In the first place is the upcoming halving. The reward for the miners, expected in mid-May 2020, will be halved from 12.5 bitcoins per block to 6.25 bitcoins. Lee would not share the opinion of some experts that the price of halving is already included in today’s price.
2. Next he goes into geopolitics. Middle East conflicts or epidemics (coronavirus) are supposed to motivate people to look for an alternative investment opportunity. Gold is often used as a store of value in crisis situations. So Bitcoin could act as digital gold.
3. The final point is the US presidential election. This is in November of this year. But it is questionable how this can affect the Bitcoin price. Exact details are missing and are only available for a fee in the Fundstrat report. This may also mean the connection to Middle East conflicts. Depending on who becomes / remains president, this could have an impact on the conflict and lead to fewer / more sanctions.
Crypto Trader: Bitcoin will rise over 140%
The crypto trader Brent points out that the bitcoin on the daily chart has sent an extremely important signal, which is very bullish: Golden Cross. The 50-day moving average crossed the 100-day moving average today. The trader emphasizes that historically this has happened 9 times since 2014, of which there was a bullrun in 8 cases.
— Brent (@blockchainblitz) February 5, 2020
Final word on the possible bull run
In general, most analysts feel positive. The euphoria is great and the long-awaited halving is getting closer. Despite the Bitcoin surge in January, the current Fear & Greed Index is 53 points. 100 points means that the market participants are greedy and 0 points that they are very fearful. So there is still room for an increase.
Market participants’ positive mood could fuel the bullrun and bring it back over $ 10,000. Because at around $ 10,000 is a psychologically important brand and therefore resistance that needs to be cracked. It remains to be seen how the next few days and weeks will develop.