Predicting the price movements of Bitcoin has become quite a popular pastime for many commentators and analysts in the cryptocurrency space. That is not to say it is easy, or even an exact science, but the volatile movements of Bitcoin mean it is just as probable for the coin to drop to $1,000 as it is for it to spike to $50,000.
One of the more optimistic bitcoin price predictors in the space is Tom Lee, the Fundstrat co-founder often makes headlines by seeing Bitcoin reaching impressive heights in short spaces of time. Lee is not always spot on with his predictions, but his rational and reasoning often make complete sense.
The latest prediction from Lee has him pegging Bitcoin to hit a new all-time high of $27,000 in the next six months, spelling a positive summer for cryptocurrency investors. Currently, Bitcoin’s price is hovering under $10,000, but many feel that if it can break that ceiling, and remain above there, the price can easily climb to new highs.
Optimistic short term
Lee, speaking to Yahoo! Finance, stated he was impressed with how Bitcoin performed in the traditionally weak month of January.
“Notably in January — January is usually a week month, it was a great month for Bitcoin, up 26% — but it also recovered its 200-day moving average,” Lee explained.
“That’s a big deal as you know, as anyone who’s a trend follower knows — when you’re back above your 200-day, you’re back in a bull market. Whenever Bitcoin breaks back into its 200-day, its average six-month gain is 197%.”
This 200-day moving average is an important metric in Bitcoin as it has long been a point of resistance that the major cryptocurrency has struggled to overcome.
Good January, good year
The fact that Bitcoin managed to show gains of 30 percent in January is being put down as a sign that the cryptocurrency can push through the year with good gains. In 2019, there was a period where the gains made by Bitcoin came up to 300 percent, but Lee sees 2020 beating that.
One of the big events that are driving these positive predictions is the Bitcoin mining reward halving which is due to take place in May this year. The cut of new Bitcoin into the market has shown to be a catalyst for renewed price action before, and is being predicted to do the same in its third iteration.