Tom Lee says there are 3 things the Bitcoin Bears are getting wrong
Tom Lee of Fundstrat Global Advisors says there are 3 things the bears are currently getting wrong about bitcoin.
Tom Lee was on CNBC Fast Money last night and he tackled 3 key points that the bitcoin bears are currently running with.
These 3 key points were broken down by point and can be seen below.
(Source: https://cointelegraph.com/news/cnbc-google-searches-for-bitcoin-down-75-since-early-2018)
Number 1: Google Searches for Bitcoin are down.
Tom says that bitcoin google searches are not a leading indicator for bitcoin.
He says that it is more of a coincidental indicator than anything else. As prices have fallen people have been less excited about bitcoin and therefor searches have tailed off.
However, he doesn't think that because searches are down it's signalling that bitcoin prices can't recover by the end of the year.
He is sticking to his $25k price target even with falling google search numbers.
Number 2: Bitcoin trading volumes are down significantly.
Tom admitted that bitcoin trading volumes are down signifcantly from December of last year.
In fact, they are down something like 80% from the volumes seen in December.
However, there is one big caveat to keep in mind. December was the parabolic blow off top for bitcoin and volumes traditionally soar during those events.
If you look at the second half of last year volumes, bitcoin volume is actually up something like 40% through the first half of this year.
Then if you compare a year ago to the same time we are in currently (January-June), volumes are up something like 900%.
So, yes volumes are down from the parabolic top seen in December, but they are gradually increasing year by year and up significantly over last year during the same time period.
Number 3: Why can't bitcoin break through $10k?
Tom says that it has some issues technically.
The chart is kind of a busted chart according to Tom and the bears have been in charge because of that.
He also says that the lack of regulatory clarity, especially in the US, is weighing heavily on markets.
That being said, he was quick to remind that bitcoin traditionally makes all of its gains in roughly 10 days out of the year.
Which means, that even though it is spending months below $10k, it could basically double in price in a matter of a couple days, which is exactly what it has done historically.
Once that big catalyst comes it won't matter what the charts say.
(Source: https://coinconnecter.com/novagrats-forsees-10k-bitcoin-in-2018/)
There you have it folks, Tom Lee says the bears are getting some of their main points wrong.
Stay informed my friends.
Source:
https://twitter.com/CNBCFastMoney/status/1003753277878624256
Image Source:
https://www.cnbc.com/2017/04/25/here-are-the-three-big-warning-signs-for-the-market-tom-lee.html
Follow me: @jrcornel
Excellent content; keep it up @jcornel 👍
Adding some perspective to the present times. Is incredible that the gains are made in roughly ten days a year. That's why you hodl and Don try to Chace the market. Thanks for sharing.
Absolutely. That's why I hate swing trading crypto: the FOMO kills me when I'm not holding it!
The FOMO doesn't scare me, but the bots are good at stopping me out...
Gains in 10 days a year.. what is he talking about? Look at the 2017 chart.
He put out some research a few months back that showed if you take away the 10 best days in terms of price appreciation each year, bitcoin was basically flat to negative every year. Meaning that all the gains each year basically come on the 10 best days of the year.
Regarding the point on volumes, it also has to do with the fact that more and more BTC trades are occurring OTC (over the counter) so those volumes are not reported on exchanges.
That is a great point. Though, how do you know that "more and more" are?
I have read and heard at industry events that more wealthy individuals and family offices in the investment side are buying BTC. This also makes sense considering that major financial institutions are investing in the space (i.e. Goldman Sachs established a trading desk and their backed firm Circle is buying Poliniex).
Yes but I mean how do you know that the number (or size) of OTC trades are increasing? Is there any data for this?
I don’t think there is a way to distinguish them from the wallet transfer you can see on the blockchain. If you segregate the exchange wallets, I imagine it can be done. However, I do not have the actual figures. I am assuming it by what I have read and heard.
Tomorrow, June 6, is gonna be the new low so almost time to buy... he he! Should break 10,000 by July 6!
Haha I am hoping we have already seen it!
I think so... lot of action happening behind closed doors!
Hey, @jrcornel Really great work my dear friend and I am glad to seen your daily post .many many thanks for sharing with us your important post.
Es posible? lo que argumentas en esta publicación. me impresiona este análisis, me intriga...
very informative specially for new comers. thanks
I think he is right that sometimes the lack of clear regulations plays against investors, many countries maintain in a legal limbo the world of cryptocurrencies, it is time to update and be at the forefront of the new.
If the US lags behind many others they will get lapped in this new technology race.
Hopefully, these 3 points will work the way he is talking!
I don't know he has stuck to 25 k with this low volume searches.
Low searches give us the information that, now people are not interested in bitcoin!
@stephenkendal just make a pool and you will be surprised to see these people :)
@people chooses #digibyte over #bitcoin.
Correct, though it may be a lagging indicator. IE when prices go up, more people get excited and check the prices. Also, once you search for bitcoin once in order to learn about it you don't really have a need to search for it again.