Fundstrat co-founder Tom Lee has called his followers’ attention to the fact that Bitcoin has broken above the 200-day moving average (DMA), meaning that the top cryptocurrency is officially in a bull trend once again.
The 200 DMA is a widely tracked moving average that gives investors a much-appreciated clue about the dominant long-term trend of a certain asset. Given that this indicator is used by a plethora of traders, it essentially becomes a self-fulfilling prophecy, Crypto News reported.
— CNBC’s Fast Money (@CNBCFastMoney) January 23, 2020
It generally considered that the asset remains in a bearish trend as long as it stays below the 200 DMA line. As soon as its price closes above this line, it’s time for the bulls to take back control over the market.
Lee points to the fact that Bitcoin’s win-rate tends to jump to 80% above when it is trading above its 200 DMA.
Bitcoin has already gained 26.5% this year, which is its strongest January since 2012. It has so far trumped gold, the S&P 500, and other traditional assets.
However, the top cryptocurrency is not going to stop there. As U.Today reported, Fundstrat predicted that BTC could gain more than 100% this year on the halvening narrative and global uncertainty.
However, it should be noted that Lee has made bad calls in the past, attracting much derision on Twitter. Last year he predicted that bitcoin would surge to $20,000 by December.