In an interview with Cointelegraph, Tom Lee, Co-Founder and Head of Research at Fundstrat Global Advisors, stated that Bitcoin is likely to stage a “pretty big recovery” in 2019.
Nowadays, Tom Lee’s predictions are always taken with a grain of salt. The well known industry analyst made several price predictions in 2018 that turned out to be completely wrong. Nevertheless, it is always interesting to hear what Lee has to say about the state of the cryptocurrency market.
In an interview published yesterday, Tom Lee told Cointelegraph that Bitcoin is likely to stage a “pretty big recovery” in the coming eights months, this according to several bullish factors.
Looking at the Bitcoin Misery Index (BMI), an index which weighs an array of factors to find out Bitcoin investor sentiment, the BMI hit a reading of 89 on April 2nd, short after Bitcoin rallied from $4,100 past $5,000. According to Lee, this is the highest BMI in several years and it shows that the market sentiment is very good currently, which is a bullish sign.
Besides the BMI, Bitcoin surpassed its 200-day moving average, which currently sits around $4,600. Lee stated:
“In any market, people tend to think an instrument/asset is in a positive trend when it’s above its 200-day. This means that Bitcoin’s recovery is taking place faster than we expected, and that its price recovery cycle won’t be any different than the past.”
Furthermore, Lee believes that with the Bitcoin halving approaching, the levels of investment the underlying space has seen in the past 24 months, the strong fundamentals (network activity in terms of transactions and fees), and the relative puny nature of the cryptocurrency ecosystem, Bitcoin could easily recover to its $20,000 high, and potentially even move past that.