Lee expected the world’s largest cryptocurrency with market cap to record an average gain of 200 percent to $27,000.
He also said:
“Notably in January — January is usually a week month, it was a great month for Bitcoin, up 26% — but it also recovered its 200-day moving average.”
In addition, Lee attributed his optimism about BTC’s short-term performance to bullish technical factor.
“That’s a big deal as you know, as anyone who’s a trend follower knows — when you’re back above your 200-day, you’re back in a bull market. Whenever Bitcoin breaks back into its 200-day, its average six-month gain is 197%.”
In fact, the cryptocurrency rose nearer to 30 percent this month before maintaining its upward trend to reach recent highs of nearly $9,450.
Some analysts believe that the next long-term bull cycle has begun, especially after the strong performance showed by BTC this month.
Lee also found that BTC investors recorded higher profits compared with the last year although their gains in 2019 exceeded 300%.
Like many, he believes that the next halving would push BTC prices strongly higher.
In May, the BTC will see another halving after undergoing two ones in 2012 and 2016. This means that the mining reward will be halved, so miners can receive 50% fewer BTC (from 12.5 to 6.25 per mined block) for verifying transactions.
In a recent report, Falcon Financial Services has maintained its medium-to-long term for the cryptocurrency market, expecting the overall market cap to remain above the $180-200 billion level.
The think tank also predicted the BTC to consolidate above $6,500 support (worst case: $6,300). “We expect BTC to perform positively in H1-20, at least until the halving event.”
Cryptolydian earlier reported Tim Draper, founder of Draper Fisher Jurvetson, as saying that millennials looking to set aside enough money for retirement should invest in BTC.
He added that millennials are living at a time where they have the whole financial future ahead of them.