For one reason or another, bearish sentiment swept through the Bitcoin market; now you have countless cryptocurrency investors asking for a further 80% drop in digital asset market cap.
Despite this heartbreaking sentiment, one analyst claimed that the proverbial crypto ball remains in favor of the bulls from a long-term perspective. Popular CryptoThies Analyst Noted in a recent tweet that took a look at the Bitcoin monthly chart, it may be illogical to be bearish on the cryptocurrency.
Supporting his point, he looked at the Chaikin Money Flow indicator. The Chaikin Money Flow (CMF), Investopedia says, is an oscillator derived from a MACD trend indicator to signal market strength.
Thies noted that the CMF “suggests that smart money has just entered the market and is trending higher,” indicating that the cryptocurrency could start to rebound and form a positive trend on the horizon. 2020.
This does not mean that the property of Thies MarketGod The indicator, which signals trends over all time periods, always prints a âbuyâ signal for Bitcoin’s one-month chart. This implies that the cryptocurrency still has upside potential in the months and years to come, until a âsellâ signal is printed anyway.
Fundamentals Suggest Bitcoin Upside in 2020
It’s not just the technical aspects that analysts say will support Bitcoin by 2020. Thomas Lee of Fundstrat Global Advisors recently sat down with CNBC to talk about his company’s latest financial market analysis. As the segment focused on US stocks, the host closed the segment with a question about the downturn in the cryptocurrency markets and if it would continue through 2020. Lee, while noting that there is had bearish headwinds, said no.
He said the surge in US stock prices, which have now reached all-time highs, mostly across the board, paves the way for risk-tolerant investors to add capital to Bitcoin and other markets that may be considered. as “risky” from a classical point of view. Indeed, the analyst noted that Bitcoin’s best performing years correlate with strong years in the S&P 500 and other leading indices, implying an appetite for risk on the part of investors.
Lee added during the segment that with the block reward reduction (halving) taking place next year, Bitcoin could receive a new boost.
Related Reading: Bitcoin Surrender Near, Price To Dip To $ 6,400 If History Rhymes
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