Tom Lee Predicts Bitcoin to Hit $91,000 by 2020!
Bullish in a Bear Market
Fundstrat’s head of research, Tom Lee, believes Bitcoin can reach $91,000 by March 2020! It’s a statement that is shocking skeptics and analysts alike as Bitcoin continues to struggle to regain stability above $10,000.
What warrants such a prediction? Lee and Fundstrat have compiled a vast database of statistics, market patterns, mining costs, and in-depth charts to help determine the price of Bitcoin on a long-term and short-term basis.
The graph below illustrates that despite the severe price corrections Bitcoin has experienced during its existence, the rebound phase is often considerably stronger.
Bitcoin’s current downtrend has been one of the most brutal in its history. If this graph is accurate, the potential recovery could blow previous highs out of the water, with the overall trend from previous years looking extremely bullish.
Bitcoin Misery Index
Tom Lee also introduced the Bitcoin Misery Index (BMI), based on the sentiment of the market and looking at the greed and fear of investors and traders alike.
The index is measured from 0-100, and the key trigger points for Bitcoin are 27 for a buying opportunity and 67 for a selling one. Simply put, the lower the index, the more miserable the market is, and the higher the index, the happier the markets are with Bitcoin’s price.
Here’s a look at Lee’s Bitcoin Misery Index (earlier this month, the BMI was at 18.8, the lowest point since 16.2 in 2011).
The BMI can be viewed similar to how the Relative Strength Index (RSI) works, where numbers at or around 70 indicate a potentially overbought asset, while numbers at or around 30 indicate a potentially oversold asset.
Current Bitcoin Price
Bitcoin currently trades at $8,257 after rebounding from the $7,500 region. The yearly outlook for Bitcoin is still at a crossroads as Bitcoin continues to test its long-term trendlines.
Other factors influencing the price include Google banning all cryptocurrency advertisements, the Mt Gox trustee dumping $400 million of cryptocurrency into the markets, and the SEC giving a tough warning to exchanges.
Disclaimer: This is not investment advice. Please research all information discussed and only invest what you are willing to lose!