Tom Lee, Bitcoin Permabull and Co-founder of Fundstrat Global, declares that there are three signs that crypto spring is here – and that Bitcoin will reach new all-time-highs by 2020.
Following the sudden price spike Bitcoin eventually climbed to just over $6000. 24 hour trading volumes also jumped dramatically. This price action had led analysts such as Lee to conclude that Bitcoin’s ‘winter’ is now over, and that the digital asset King has entered its ‘spring’ phase.
Amongst the positive fundamental indicators are; increase of volume with on-chain transactions, price above the 200-day MA, a golden cross formation and increase of OTC market trading volumes.
SURVEY: Bitcoin golden cross (50D crosses above 200D) today.
What is your reaction to this Golden Cross
— Thomas Lee (@fundstrat)
If confirmed, this golden cross has reappeared for the first time since 2015, and could be a significant indication of substantial price-action reversal for Bitcoin (and the wider cryptocurrency markets). As readers will see from this fantastic Bloomberg chart, 2015’s golden cross last occured in 2015, and gave rise to a 100x speculatory increase in Bitcoin’s price 2 years later.
A Pod of Whales
If April 2nd’s 20%+ price spike wasn’t enough of a confirmation that institutional investment is (almost) set off the next wave of parabolic panic buying – increase in Bitcoin’s strengthening fundamental values should be. News that all-time highs have also been reached on LocalBitcoins weekly volume for Argentina, Colombia and Kazakhstsan; as well as potential Black Swan event adoption by NASDAQ and E-trade, demonstrates that Bitcoin has a much stronger case for higher valuations than at the end of 2017.
Will we see this fabled Black Swan event by 2020? That’s harder to predict. But as both public and institutional access is improved to the cryptocurrency ecosystem, and adoption stories from mainstream manufacturers become more commonplace, the inevitability of such an event is (almost) guaranteed.