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Right after Tuesday morning’s run-up, CNBC hosted a premier Bitcoin and cryptocurrency analyst to shine a light on why Bitcoin could see further moves to the upside.
Fundstrat Analyst Says Bitcoin Sitting 30% Under 200 Day MA is Positive
On Tuesday, Tom Lee, the head of research at Fundstrat Global Advisors, made an appearance on the CNBC’s ‘Fast Money’ segment following Bitcoin’s rapid run-up from $6,700 to $7,400.
#Bitcoin had its best day in three months and @Fundstrat's Tom Lee has two charts that could make you even more bullish pic.twitter.com/TSWwO7PFeY
— CNBC's Fast Money (@CNBCFastMoney) July 17, 2018
Melissa Lee, a host of Fast Money introduced Lee, stating that he has two charts that could signal a “Bitcoin moon boom.”
Firstly, the Fundstrat analyst brought attention to Bitcoin’s 200-day moving average (200 MA), which currently sits around $10,500. At the time of presenting, Lee stated that Bitcoin is presently sitting at approximately 30% under the 200 MA.
While a move under a moving average, like the 50, 100 or 200-day, has historically been seen as a negative sign, Lee called Bitcoin’s current relation to the 200 MA a “pretty positive signal.”
Assuming that some viewers of the segment would be questionable, Lee went on to point out why this is actually a positive sign. The analyst stated:
“The reason it’s a positive signal is that this has happened a few times since 2009… Number one, Bitcoin bottomed within a month here (after hitting 30% under the 200 MA). But I think it tells us something even more important not in the next month. It’s tell us that if you look forward in the next six months you’re going to do well owning Bitcoin here.”
Lee later added:
“So to us, the message is when Bitcoin is trading 30% below its 200-day, its a huge bull signal… If you could ever buy Bitcoin 30% below its 200-day moving average, you almost always saw good risk (and) reward being long.”
Tom Lee: A Combination of Fundamentals and Technicals Indicate Bullish Stance
Not only does Lee believe that the aforementioned signal is bullish, but so are other technical and fundamental signals. As with any market, there often isn’t a single catalyst to attribute to a price gain or decline.
Speaking on technical signs, the Fundstrat analyst stated:
“Over the weekend, there were quite a lot of folks who were talking about TA and the potential formation of either an inverse head and shoulders or a Wyckoff buy off. So it sounds like the technicals were really starting to become more favorable.”
When queried about his opinions on the recent Mastercard news, that will see the payments firm obtain a patent intended to connect the fiat and crypto world, Lee noted:
“I think something like the Mastercard news is positive because it’s really validating the idea that digital money or blockchain-based money is a valid form of transactions.”
Lee has long been held as the face and representative of Bitcoin bulls, as he has continually called for Bitcoin to hit $25,000 come January 2019. And with these most recent statements, it has become clear that his stance on the cryptocurrency market remains bullish, despite the trials and tribulations that were seen as Bitcoin fell by over 60% since January 2018.
Featured image from Shutterstock.
