Fundstrat’s Tom Lee remains confident in bitcoin’s (BTC) long-term potential despite its recent pullback, labeling the correction as a routine event in the asset’s volatile history.
Bitcoin has fluctuated between $90,000 and $100,000 over the past week, testing investor sentiment. After dipping below $90,000 on Monday, BTC rebounded sharply on Tuesday, trading above $96,500, representing an 8% recovery in 24 hours.
Speaking to CNBC, Lee downplayed the concerns surrounding bitcoin’s 15% decline from its recent highs, describing it as a normal occurrence. “For an asset as volatile as bitcoin, a 15% pullback is just part of the journey,” he said.
Glassnode data highlights that drawdowns in this cycle have been more moderate than in previous bull markets, where corrections often reached 30%-50%. This trend underscores bitcoin’s growing maturity as a financial asset.
Lee pointed to $70,000 as a crucial support level, supported by Fibonacci retracement analysis. If that level fails, he noted, bitcoin could dip to $50,000. Fibonacci levels, which include 23.6%, 38.2%, 50%, and 61.8%, are commonly used by traders to predict key points of support and resistance.
Despite the short-term volatility, Lee maintains a positive outlook, stating that bitcoin will remain a standout performer in 2025. He reiterated his year-end price target, forecasting BTC to rise to $200,000-$250,000.
About The Author
More Stories
Crypto majors سجل strong double-digit weekly gains as Bitcoin tests the $75,000 level before the Fed call
Bitcoin falls under $75,000, with the derivatives-fueled surge already losing steam
Bitcoin pushes past $75,000 as derivatives markets take the lead in the rally