Fundstrat Global Advisors Co-Founder Thomas Lee Believes Bitcoin is Now in a Bullish Trend
In the interview, Lee said that critics of Bitcoin (BTC) pronounced it dead because it lost 90% of its value. But, now, Bitcoin has broken upwards of its 200-day moving average (MA), which is an indicator that sentiment has begun to swing back in a positive direction. Lee also mentioned that the US dollar not strengthening this year and China’s equity multiplier growing have negatively affected momentum for Bitcoin’s price.
What’s more, Lee noted that there is reason to believe that whales — big investors who hold a large quantity of a certain cryptocurrency; for example, someone could be a whale of a certain crypto, like a “NEO Whale,” for example — have once again begun to buy up crypto:
“A lot of them sold, in early 2018 — that’s dry powder. They’re starting to put that to work.”
By “dry powder,” Lee means cash that has yet to be spent on crypto; basically, money that has yet to be re-invested. Early 2018 was when the crypto market began the downturn it still finds itself in, however Lee may be implying that these investors sold at a profit at or near the top of the market, since they have considerable funds to reinvest.
Only about three weeks ago, Lee told CNBC that he thinks that a crypto bull market could return within six months, noting that the 200-day moving average is the indicator to watch.
In February, Lee’s New York-based research firm Fundstrat Global Advisors released its 2019 crypto outlook, which called for higher crypto prices on the strength of incremental improvements in the space.
Whether Lee’s predictions come to fruition or not remains to be seen, but he seems fairly confident based on both technical and fundamental indicators.