Bitcoin Could Crash to $50,000 Before Its Starts Rallying, Tom Lee Says
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Tom Lee, Fundstrat Capital’s head of research and a full-time contributor to CNBC’s Fast Money show, has paid a visit to CNBC to talk to them about Bitcoin and its prospects in the near future.
Lee revealed two price levels at which Bitcoin might go down from the current $96,590, where it surged after hitting $90,700 on Monday. In December, Bitcoin reached an ATH of $108,268.
Bitcoin may hit $50,000 before rallying again: Tom Lee
While answering questions about how much lower Bitcoin can go down from $90,700, the Fundstrat expert said that currently Bitcoin is down by a “perfect 15%” from its recent price peaks, calling what is happening now “a pretty normal correction” for a highly volatile asset. Bitcoin is slightly following global liquidity, he pointed out.
However, according to Lee, the market is still pretty early in the current Bitcoin halving cycle. Therefore, he would assume that in the near term, BTC may drop to $70,000. This opinion is also shared by Fundstrat’s technical analyst, Lee added. Should that happen, Lee said, the market would get “a bigger opportunity” to buy the dip since Bitcoin is going to be “one of the best-performing assets” this year, according to Lee.
However, Lee assumed that, theoretically, Bitcoin could drop even lower and touch the $50,000 zone. But this would be the price line from where it would push to start rallying again.
Still, as Bitcoin dipped, Michael Saylor’s MicroStrategy made another purchase, buying $243 million worth of BTC. Now, the company holds a whopping 450,000 Bitcoins.
Yuri MolchanBitcoin recovers after 5.47% fall
The flagship cryptocurrency has finally begun to recover after being in free-fall since last Tuesday, when Bitcoin came quite close to the $103,000 level. By last Thursday, Bitcoin had crashed by more than 11%, hitting $91,290. After recovering 5.1% and reaching the $95,945 price level, Bitcoin plunged, once again going down below $90,000 briefly.
Today, bulls put pressure on Bitcoin, propelling the price up to $97,270. At the time of this writing, BTC is changing hands at $96,500 per coin. Still, Bitcoin maximalist Max Keiser tweeted on Monday that despite the price drop, the Bitcoin network has hit new highs in strength and stability as the hashrate and mining difficulty went up to new record peaks.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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