Connect with us

Bitcoin

Bitcoin may reach $40,000 before Dow Jones: Fundstrat’s Lee

Published

on

Source: Pixabay

The optimism around Bitcoin‘s valuation is inescapable at the moment. Bitcoin’s year-to-date spike was recorded to be upwards of 40 percent, clocking in at 42.14 percent on 9 February. Such a scenario has given an inevitable rise to predictions and speculations with regards to Bitcoin’s future market movement.

During a recent interview on CNBC’s Power Lunch segment, Fundstrat’s Tom Lee highlighted that market fundamentals are unavoidably bullish for Bitcoin this year.

At press time, Bitcoin had registered a slump of 5 percent, depreciating from $10178 to $9731. However, Lee believes that with the approaching Bitcoin halving, the possibility of a new ATH increases with time.

Addressing major catalysts in the market, Lee claimed that last year’s Bitcoin’s rally was probably halted by Washington’s intervention after Facebook introduced its own crypto-project, Libra. From the perspective of an analyst, Bitcoin’s surge above the 200-day moving average on a daily chart was identified as a major bullish sign by the global financial advisor. In the past, Bitcoin’s average gains post breaching the 200-moving average have been above 190 percent, something that assured the analysts about Bitcoin’s current bullish momentum.

When queried about a price target, Lee raised a comparison between Dow Jones and Bitcoin.

At press time, Dow Jones was priced in at $29,276 and Lee claimed that DJI’s valuation would reach $30,000 before Bitcoin.

However, Fundstrat’s Tom Lee went on to say that he would put all his chips on Bitcoin to possibly breach $40,000 before the DJI does.

Source: BTC/USD on Trading View

On closely observing the Bitcoin charts, a fair argument can be made for the world’s largest digital asset reaching a new all-time high this year as the valuation has managed to consolidate above the 200-moving average over the past week. It has also been noted that the 50-MA and 200-MA are approaching a crossover in the charts, pertaining to the completion of a golden cross.

Combined with the active support of the 200-moving average and manifestation of the golden cross, Bitcoin may as well register a new ATH by the end of 2020. However, the bullish momentum would need to rally strongly, both before and after the halving in May.

Where to Invest?

Subscribe to our newsletter

Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.