The co-founder and head of research at Fundstrat Global Advisors says Bitcoin (BTC) needs to crash out a bit harder before bouncing back in a big way.
In a new interview with CNBC, Tom Lee makes his case for why he thinks BTC will be a top-performing asset this year after it falls a bit further.
[adinserter block="1"]“Bitcoin is down roughly 15% from its highs, which for a hyper-volatile asset is a normal correction and follows global liquidity trends. We are early in the halving cycle.”
According to Lee, Fundstrat’s crypto technicians think the crypto king may drop another $20,000 in value before correcting.
“Our technician thinks $70,000 is where we make a stand. I think Bitcoin is one of the best-performing assets. When asked whether it will drop to $70,000 or if that’s the floor, the response was that $70,000 is one level of retracement, where Bitcoin might pull back from a rally.”
However, according to Lee, BTC could potentially drop even lower.
“It could go as low as the $50,000 [range], but that wouldn’t be a new level; it’s where it touches before beginning to rally again. For those considering buying Bitcoin at these prices, the suggestion is that Bitcoin is a long-term investment. If they’re trying to time the market, they might get lucky and it could reach $70,000.”
Bitcoin is worth $91,731 at time of writing, down 10% during the week.
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