Pakinomist – Tom Lee, Fundstrat Capital’s head of research and full-time contributor to CNBC’s Fast Money show, paid a visit to CNBC to talk to them about and its near-term outlook.
Lee revealed two price levels where Bitcoin could fall from the current $96,590, where it rose after hitting $90,700 on Monday. In December, Bitcoin reached an ATH of $108,268.
Bitcoin Could Hit $50,000 Before Rallying Again: Tom Lee
While answering questions about how much lower Bitcoin can go from $90,700, the Fundstrat expert said Bitcoin is currently down “a perfect 15%” from its recent price peaks, calling what’s happening now “a pretty normal correction” for a very high volatile asset. Bitcoin follows little global liquidity, he pointed out.
However, according to Lee, the market is still quite early in the current Bitcoin halving cycle. Therefore, he would assume that in the short term BTC may fall to $70,000. This opinion is also shared by Fundstrat’s technical analyst, Lee added. Should that happen, Lee said, the market would have “a bigger opportunity” to buy the dip, as Bitcoin will be “one of the best-performing assets” this year, according to Lee.
However, Lee surmised that Bitcoin could theoretically drop even lower and touch the $50,000 zone. But this would be the price line from which it would push to start rallying again.
Still, when Bitcoin fell, Michael Saylor’s MicroStrategy made another purchase, buying BTC for $243 million. Now the company has a whopping 450,000 Bitcoins.
Bitcoin Recovers After Falling 5.47%
The flagship cryptocurrency is finally starting to recover after being in freefall since last Tuesday, when Bitcoin got pretty close to the $103,000 level. Last Thursday, Bitcoin had plunged by more than 11%, reaching $91,290. After recovering 5.1% to reach the price level of $95,945, Bitcoin dipped and briefly fell below $90,000 again.
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 hit new heights in strength and stability as hash rate and mining difficulty soared to new record highs.
