In a client note, research firm Fundstrat made a prediction that Bitcoin could skyrocket up to 193 percent over the next six months.
The bullish forecast is based on the fact that the flagship cryptocurrency has once again crossed the 200-day moving average when it surged above the $8,900 level.
The inflection point
The 200-day MA is one of the most important indicators when it comes to determining the prevailing market trend in the long term. As long as an asset is above this line, its uptrend remains intact.
Fundstrat has come up with the aforementioned percentage based on Bitcoin’s price performance over the last decade.
That said, it’s crucial to understand that this bullish technical picture doesn’t necessarily translate into another rally. After recovering from its Q4 drawdown, Bitcoin crossed the 200-day MA in late January, but its new bull run was hampered by the coronavirus pandemic.
On track to $40,000
In mid-February, Fundstrat co-founder Tom Lee predicted that the Bitcoin (BTC) price could rocket to $40,000 in 2020 when it was sitting just below $10,000.
Now that COVID-19, a once-in-life-time exogenous event, has ravaged the global economy, Fundstrat remains bullish on Bitcoin.
As reported by U.Today, Lee is also a staunch proponent of a V-shaped recovery in the U.S. stock market despite horrendous economic data.
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