Following the February 8 uptrend, which saw the overall market cap add a whopping $9 billion in less than 24-hours and saw coins reach massive double-digit percent increases against the US dollar, proponents are hopeful, and Tom Lee backs this hope with numbers.
Lee appeared on Fox Business to reiterate his bullish sentiment for the coin and then took to Twitter to state the same. He referenced a piece from a “MagicPoopCannon,” titled, “Odds Increasing That The Bitcoin bear is Dead!” and added that the analysts who were bearish on cryptocurrencies in 2019 are switching to the bull. He added that the piece looks at a 200-week moving average acting as the support, which people like Robert Sluymer, the Managing Director and Technical Strategist at Fundstrat, have noted as well.
In his analysis, MagicPoopCannon compared the Bitcoin price charts from early-2015 to the current period. He stated that there is a triangle formed using the 200 MA and that Bitcoin has, “rallied back into the triangle formation that it broke down from”. He added that if the coin could close its daily price candlestick inside the triangle, that would represent 2015-like conditions and prove to be a bullish swing.
MagicPoopCannon had earlier confirmed that Bitcoin would bottom at $2,000 and that the February 8 bullish push could prove a strong technical case for the top cryptocurrency. Bitcoin surged from being just under $3,400 at the start of the trading day on February 8 to a high of almost $3,700 at the close of the day, a remarkable rise following weeks of bearish movement.
He also drew several parallels between LTC’s recent rise, which saw the coin surge by over 30 percent, and that of Bitcoin’s, he added that “as soon as LTC began to move, I figured BTC would follow suit”. The analyst believes that if Bitcoin can push above the 50 EMA market and further to the top of the downtrend channel, then:
“In my opinion, that would basically confirm that the bear market has ended.”
The support is pegged at the 200-week EMA, which as current price movements go, stands at $3,300 and if Bitcoin would edge below this point, thereby failing to end outside the triangle, the trend would reverse.
As the cryptocurrency markets turned for the better on February 8, Tom Lee listed out nine incremental improvements in the landscape that will push cryptocurrency prices upwards. In it, he added that the value of the US Dollar is expected to fall, institutional investors will see institutional grade custody solutions and top exchanges like Binance will add credit-cards to their offerings. All this and more, according to Tom Lee and his team at Fundstrat, will push Bitcoin and other cryptocurrencies upwards in 2019.
Some Twitter users were not very hopeful, despite Lee’s prediction. Carlin Lee tweeted:
“Rattling around in a downward trend channel is bullish? I think not.”
Tim Les, tweeted:
“it doesn’t matter if you’re bullish if there are no buyers.”