Bitcoin’s price is on a wild ride in 2020, surging about 35% year-to-date. With the halving just around the corner, however, analysts and commentators already began giving their prognosis.
Bitcoin Could Reach $27,000 By July According To Tom Lee
Thomas Lee is the Head of Research and Managing Partner at Fundstrat Global Advisors. He’s also one of the most vocal commentators of Bitcoin.
A couple of weeks ago, Lee appeared in an interview at CNBC, discussing Bitcoin’s price. According to him, it’s currently trading above the 200-days moving average, which has historically been a precursor of the price going up.
He said that in 80% of the time this happened, Bitcoin has surged approximately 193% on average. Given the price for Bitcoin at the time of the interview, this would put it at approximately $27,000 by July.
Golden Cross Pattern Might Support This
Lee’s prediction may sound inflated, but it appears that certain technical patterns support it. Bitcoin’s chart just painted the so-called “Golden Cross” a couple of days ago.
To those of you who are unaware, a golden cross takes place when the 50-days moving average crosses above the 200-days moving average.
This happened on February 18th. The last time this happened was back in April 2019. Back then, Bitcoin was trading at around $5,000 and it surged to $14,000 in 60 days.
But What About The Recent Dump?
First off, it’s important to understand that the Golden Cross is a pattern that signals potential long-term increases in the price. It’s not an indicator of a sudden run-up.
Bitcoin’s price just went through one of its most considerable hourly crashes in history. In less than 60 minutes, it lost over $800. Even though it recovered from $9,300 to where it had dropped, this liquidated a lot of leveraged long positions across the board.
Nevertheless, even this plunge could be an indicator for an upcoming surge, according to a report from Cointelegraph.
Look what happened after the previous golden cross. First, it dumped around 10% and then it pumped 170% in 60 days.
Disclaimer: None of the above should be considered as investment advice. Make sure to do your own research when trading cryptocurrencies and keep in mind that history is not an indicator of future actions.
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