Tom Lee, the founder of Fundstrat Global Advisors, has forecasted that cryptocurrency and virtual asset prices will beat new historic all-time highs by 2020. Lee conveyed his comments during an interview with CNBC on April 28.
Lee forecasted, in the interview, that BTC has not completed its growing movement. He further mentioned that it will likely reach new all-time highs around 2020 based on eleven signs that, in times gone by, only take place in a bull market. Interestingly, Lee recapitulated his preceding prediction made earlier this month when he mentioned that a bull market is possibly commencing.
Lee gave details that 3 out of those eleven signs point toward the scenario that the cryptocurrency winter has seen its end. These 3 signs include technical indicators, blockchain, and trading volumes. In the month of January, Lee’s team observed that trading volumes on the blockchain turned positive at an annual rate. According to him and his team, the 2nd sign started appearing in the month of April, when Bitcoin closed above its two hundred days moving average.
As per Lee, trading volumes, the 3rd sign, is connected with OTC brokers, who are actually significant in terms of how institutional investors trade cryptocurrencies and digital assets. Based on the number of customers, the activity levels increased by sixty percent to seventy percent, as per Lee.
Previously in April, Lee mentioned that the Bitcoin Misery Index (BMI) lately hit its uppermost figure since June 2016. It is to be noted that Lee designed Bitcoin Misery Index with the intention of informing investors of how “miserable” Bitcoin holders are, based on the cryptocurrency’s price and volatility. Lee further suggested that this may perhaps be a mixed signal. He also noted that the most important takeaway is that Bitcoin Misery Index reaching sixty-seven is additional substantiation the bear market for BTC possibly ended at $3,000.