Thomas Lee, the co-founder of Fundstrat Global Advisors, tweeted his thirteen explanations justifying his perception that the crypto winter is now over. In the notification, Lee pointed out that New York City Consensus Conference held last week was the latest of 13 indications, reflecting a recovery in the sector after a couple of hard months.
Lee noted that the move to $8,000 was proof of the uptrend being intact after the ‘disturbing pullback to $6,200.’
His sequence of events representing the reversal backs to November 2018, when the Bitcoin (BTC) reserve kept by two competing mining pools was depleted by a Bitcoin cash (BCH) hard fork conflict. Next he noted that the NAV premium of Grayscale Bitcoin Trust dropped to 5%, its smallest level since 2017, which also meant that the handover had taken place. Since then, the premium has soared to 41%.
Other important metrics mentioned by Lee include on-chain operations which went favorable year-on-year in 12 months for the first time in January 23. In March, the Bitcoin Misery Index of Fundstrat surpassed the level of 67 for the first time since August 2017. In early April, Bitcoin broke above the 200 day moving average after staying below for almost thirteen months.
Over the counter (OTC) volumes also began to climb with numerous brokers revealing a 60-70% increase in fresh customer activity relative to four months earlier. There have also been rumors that the heightened trade conflict between the US President Trump and China has prompted buyers there to aggressively accumulate Bitcoin as a secure store of value. In late April, Bitcoin ‘golden cross’ was a significant technical signal reflecting a change in the overall trend.
Relatively low response to adverse news like the Tether fiasco and the Binance hack also confirms significant trust in crypto sectors At last, the Consensus crypto conference this month was the validation that crypto winter has come to an end, according to Lee.
Lee is renowned for his predictions of the direction of cryptocurrency rates. He anticipated on April 29 that by 2020 BTC will record fresh highs by 2020. Bitcoin had an enormous week more than $100 billion in record volume, with a massive candle. With a 13% rally in seven days, all discussion of this enormous correction has decreased as analysts are looking for the upcoming resistance levels. Full-time trader ‘The Crypto Dog ‘ has studied the charts, warning potential weekly resistance at $8,215 and support at about $7,300.
Crypto Dog added;
“Hell of a bullish weekly close on #Bitcoin with near record breaking volume, solidifying the strength and validity of this rally.”
After a disturbing pullback to ~$6,200, #Bitcoin back >$8,000 further cementing positive trend intact.
As we said a few weeks ago, Consensus 2019 @coindesk was to prove whether crypto winter is over…
…confirmed pic.twitter.com/M8ni4g2YvX
— Thomas Lee (@fundstrat) May 19, 2019
At the time of writing Bitcoin has fallen below $8,000 to trade at $7,740 levels, with a loss of 2.5% in 24 hours.