PakGazette: Tom Lee, head of research at Fundstrat Capital and a full-time contributor to CNBC’s Fast Money, visited CNBC to talk to them about their outlook in the near future.
Lee revealed two price levels where Bitcoin could drop from the current $96,590, where it rose after hitting $90,700 on Monday. In December, Bitcoin reached an ATH of $108,268.
Bitcoin May Hit $50,000 Before Recovering Again: Tom Lee
While answering questions about how much lower Bitcoin can go from $90,700, the Fundstrat expert said that Bitcoin is currently down a “perfect 15%” from its recent price peaks, calling what’s happening now “a pretty normal correction.” for a highly volatile active price. Bitcoin is slightly following global liquidity, he noted.
However, according to Lee, the market is still quite early in the current Bitcoin halving cycle. Therefore, I would assume that in the short term, BTC could fall to $70,000. This opinion is also shared by Fundstrat’s technical analyst, Lee added. If that were to happen, Lee said, the market would have “a greater opportunity” to buy the dip, as Bitcoin will be “one of the best-performing assets” this year, according to Lee.
However, Lee assumed that Bitcoin could theoretically fall further and touch the $50,000 area. But this would be the price line from which it would push to start rising again.
Still, when Bitcoin fell, Michael Saylor’s MicroStrategy made another purchase, purchasing $243 million worth of BTC. Now, the company owns a whopping 450,000 Bitcoins.
Bitcoin recovers after 5.47% drop
The flagship cryptocurrency has finally started to recover after being in free fall since last Tuesday, when Bitcoin got quite close to the $103,000 level. Last Thursday, Bitcoin had plummeted more than 11%, reaching $91,290. After recovering 5.1% and reaching the $95,945 price level, Bitcoin plunged, once again falling below $90,000 briefly.
Today, bulls are putting pressure on Bitcoin, driving the price up to $97,270. At the time of writing, BTC is changing hands at $96,500 per coin. Still, Bitcoin maximalist Max Keizer tweeted on Monday that despite the price drop, the Bitcoin network has reached new highs in strength and stability as hash rate and mining difficulty reached new record peaks.
