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The bitcoin expert said 2018 was a “terrible year” for cryptocurrencies but insisted “evidence is mounting that there is a bull market”. The cryptocurrency expert said key signs which historically only take place on a bull market suggest bitcoin price will continue to build.

Bitcoin hasn’t been above its 200-day average for more than 13 months Tom Lee

Firstly, Mr Lee said the chaos in Venezuela and Turkey, where residents may require a new way of holding money, are using bitcoin as an alternative. He told CNBC: “Just taking those two countries, they’re close to 30 percent of the increase in on-chain activity, so it’s meaningful,” “People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using bitcoin.’ And that’s what’s causing the on-chain volume to really take off.” Mr Lee said the second indicator was when bitcoin closed above its 200-day moving average.

Bitcoin price: Tom Lee says bitcoin is back

He continued: “The things that really matter are things like unchanged blockchain volumes turned positive on a year-year basis in late January. Bitcoin crossed above is 200-day moving average on April 1. “It’s a big technical hurdle to cover and hasn’t been above its 200-day average for more than 13 months.” Thirdly, the finance expert and managing partner and head of research at Fundstrat Global Advisors, said activity levels based on a Fundstrat survey of over-the-counter brokers suggested increased trading in bitcoin. He added: “I think you are seeing signs that fundamentals are improving, technicals are improving and now there is real activity by, essentially, crypto holders.” Mr Lee said such indicators suggest the cryptocurrency is “likely” to continue to climb and push it to all-time highs “around” 2020.