The consolidation between $90,000 and $100,000 for bitcoin (BTC) continues to play with investor sentiment, swinging from fear to greed.
On Monday, bitcoin fell below $90,000, while on Tuesday it is above $96,500, an increase of more than 8%. Bitcoin bull Tom Lee, head of research at Fundstrat, told CNBC on Monday that he considers this current Bitcoin correction normal.
“Bitcoin is down 15% from its highs for a volatile asset, which is a normal correction,” he said.
Data from Glassnode shows that bitcoin in this current cycle has seen relatively mild declines of around 15%-20%, much smaller than previous bull market declines, which saw declines of up to 30%-50%, which shows that the asset is becoming more mature.
According to Lee, $70,000 is a line in the sand, which is a strong support level. They refer to a methodology called Fibonacci levels, or retracement periods, essentially where bitcoin retraces from where its rally began. Lee also believes that the $50,000 level may be tested if the previous levels of $70,000 do not hold. Common Fibonacci levels from the all-time high that analysts are looking for are 23.6%, 38.2%, 50%, and 61.8%.
Despite a short-term correction, Lee still believes bitcoin will be one of the leading assets in 2025 and remains bullish on year-end targets of between $200,000 and $250,000.
