Bitcoin’s Performance Above 200 MA May Be A Bullish Sign

By Kapil Gauhar

Bitcoin’s performance in January 2020 turned many heads in the industry. Still, whenever there’s any discussion of a spike in value movement anywhere in the virtual asset industry, there’s additionally discussion about solid unpredictability.

With that said, Fundstrat’s Tom Lee has guaranteed that the ongoing surge in the value is upheld by a key principal signal.

In an ongoing interview with Yahoo Finance, Tom Lee asserted that BTC’s uptick of 30% came during a period that covered with the outbreak of the novel coronavirus and rising geopolitical strains between major countries including the US and Iran. Such a circumstance has improved BTC’s use cases as the worldwide equities market is getting stirred up in the US and abroad owing to the previously mentioned occasions, Lee claimed.

Truthfully, the previously mentioned proclamation is valid as throughout the most recent 3 months, BTC’s connection with the S&P 500 experienced an inversion from a positive 13% to negative 10%. Such a flip would recommend, that market unpredictability could take the world’s biggest crypto-asset higher in the coming weeks.

Lee added –

“Enough times in the past, post the starvation of capital, like the space hasn’t seen any capital inflows, the only good projects are surviving now, so there is actually a lot of interest in looking at what’s still alive, because these things actually have real progress and fundamental values, so I think it is a really good time to look at crypto.”

However, the key sign saw by Tom Lee is that BTC’s value as of late moved over the 200-day moving average on the outlines. As per Tom Lee, verifiably, at whatever point the cost has drifted over the 200-day MA, BTC has enrolled an average six-monthly gain of 197%.

As indicated by the reports, Lee’s announcement reflects past market performance as Bitcoin recorded a 189% climb back in April last year when it broke over the 200-moving average. The value moved from $4800 to $13880 in a range of 84 days following the last rupture over this key pointer.