Following the straight out of left field rally this past Friday, analysts have started to show an optimistic view of Bitcoin (BTC) for the first time in as many months. In fact, according to an industry insider the technical analysts all centered on Bitcoin (BTC) have begun switching gears from the bearish sentiment to a bullish feeling. The question is, will their forecasts come to pass?
Bitcoin (BTC) Price Today – BTC / USD
Tom Lee Swallows The Bitcoin (BTC) Red Pill Once More
It would appear that Tom Lee of Fundstrat has downed the Bitcoin (BTC) red pill one more. The crypto eccentric did this after appearing on Fox Business. During the broadcast, he touted his optimistic sentiment. The co-founder and research head at Fundstrat Global Advisors took to the social media platform Twitter to expand on his bullish narrative of the top asset class.
Citing, several strategic points from an analysis provided by “Magic Poop Cannon,” a crypto trader that is well-followed on Twitter, Lee declared that technical analysts who have been bearish since the start of the new year are now becoming “incrementally bullish” regarding the chances of Bitcoin (BTC). But why is that?
The Odds of the Bitcoin (BTC) Bear Increasing is Dead
According to the analysis Lee cited, the odds that the “Bitcoin Bear” is already dead are increasing. Magic, the Twitter user and crypto trader who made the comment that Bitcoin (BTC) is likely to bottom at the $2,000 position earlier this week, cited that Friday’s rally presents a strong technical case for the cryptocurrency.
According to the trader Friday’s 8% move, which took BTC above $3,700, returned into a triangle formation. Magic claims that if the BTC price can close its daily trade above $3,600, then bullish momentum would have taken over.
He then drew parallels between the bear season from 2014/2015 and the current bear market. He drew the conclusion that while there are significant differences, Bitcoin is “trending in a similar way currently to the way it shifted at the same bottom in the last bear season.”
Yet, it was also stressed that the 200-weekly moving average is a key line of support for the Bitcoin (BTC) price, which in essence means that a break below that level, which is currently situated at the $3,300 position could reverse this pattern.
Fundstrat Remains Optimistic About the Prospects For Cryptocurrencies This Year
As remarked earlier, Lee’s recent declaration for the Bitcoin (BTC) comes after he previously made an appearance on American TV to talk about the prospects of the cryptocurrency for the year. The Fundstrat executive explained on-air that the $25,000 position is a “fair value” for the top digital currency, insisting that the thirst for an uncorrelated token that is used for speculative purposes and as a newfangled legal tender or a store of value as well as a reason for his declaration.
Lee’s recent comments regarding the leading cryptocurrency also come after his New York-based financial advisory outfit released its Crypto Outlook report for the New Year. As previously reported, Fundstrat proposed a number normal of technical, macro, fiat-to-crypto inflows, and Blockchain technology, as well as equity trends to stress why the outlook for the Bitcoin (BTC) and other digital assets could improve this year.