Tom Lee: Bitcoin returns to the game

According to longtime bull, Tom Lee, Bitcoin returns to the game.

Despite the sharp fall from last Friday, caused by another scandal, this time against Bitfinex, Lee believes the digital currency is already in the bullish market.

"Last year, it was terrible for the crypto market, but I think there is enough evidence that we are entering a new bull market." - says Lee. He is a partner to Fundstrat Global Advisors.

He believes that Crypto Winter is over, and for him the leading factors that keep the price high at the moment are: blockchain, technical indicators and trading volumes. The first sign was in January as Lee noticed that volumes have risen significantly since last year. This support came from the problems in Venezuela and Turkey, which turned to Bitcoin as an alternative.

"Only these two countries occupy 30% of all blockchain infrastructure activity," says Tom Lee. "People say they do not trust the local currency and the banks that they will start using Bitcoin."

The second signal occurred in April when Bitcoin closed the 200-day daily moving average. This event is perceived as a strong bullish signal. The third signal has come from traders' activity and, in particular, from institutional traders. A Survey of Fundstrat shows that the activity of institutional clients has risen to 60-70%.

"I think we are seeing signs of improvement in the foundation, and technical things are also improving, and now we have a lot of activity from institutional traders." - says Lee. Another sign that led to Bitcoin's rise in price was the weaker supply.

Lee predicts that all of these positive factors can push Bitcoin's price to a new historic peak in 2020. He has successfully predicted the launch of the bullish market in March this year, adding even a standard deviation to the S & P500. This year it is 2.5, which can also help raise the cost of the digital currency.

"We have to take into account that whenever the S & P500 made a big move, it also led to the crypto markets at a later stage, so I think a 2.5-point deviation from Bitcoin might cost $ 14,000. I'm not saying that the price will go to exactly that level, but movement from this scale is now real. " "Lee said.

Source: CNBC

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