Bitcoin could end 2018 at $22,000, Fundstrat Global Investors analyst Tom Lee repeated in new predictions about the end of the cryptocurrency bear market October 19.
LEE: 200-DAY MA ‘VERY IMPORTANT’
Speaking during an interview with social media blog Crypto Tips, Lee, who is known for his bullish stance on Bitcoin in particular, highlighted the 200-day moving average price trend as a key factor in determining its future performance.
“When Bitcoin’s below its 200-day, it only goes up 50 percent of the time in the next sixth months, but when it’s above its 200-day, it’s up 80 percent of the time,” he said referring to analysis produced by Fundstrat last week.
“The 200-day and the trend that’s implied by that is obviously very important.
Far from a continuation of this year’s price downturn, Lee added he thinks it is “more likely” that Bitcoin $6488.06 +0.01% would put in an unexpected climb.
That hypothesis runs counter to assumptions shared by many other analysts within the cryptocurrency industry, who have endorsed an idea BTC/USD must first ‘bottom’ as low as $3000 before finally challenging its all-time highs.
For Lee, $6000 is the “floor.”
“Where can the surprise take place? I know a lot of people think Bitcoin’s price will collapse to $3000; I think what’s more probable a surprise is that we have a very explosive increase in price,” he continued.
For Ethereum (ETH) $203.919 +0.12% meanwhile, Lee also saw support returning to markets. The largest altcoin by market cap had fallen more precipitously than Bitcoin, at one point trading as low as $170 in recent months, its worst performance since May 2017.
“…Ethereum is already trading like it’s capitulated,” he said.
In 2018, a combination of factors including the EOS ICO, ICOs in general, BitMEX’s ETH futures and media “hitjobs” had created a “negative” story around the asset.
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