The consolidation between $90,000 and $100,000 for bitcoin (BTC), continues to play with investor sentiment, swinging from worry to greed.
On Monday, bitcoin fell under $90,000, whereas it’s above $96,500 on Tuesday, up over 8% . Bitcoin bull Tom Lee, head of analysis at Fundstrat, informed CNBC on Monday that he sees this present correction in bitcoin as regular.
“Bitcoin is down 15% from its highs for a risky asset, which is a standard correction,” he mentioned.
Glassnode information exhibits that bitcoin on this present cycle has seen comparatively gentle drawdowns of round 15%-20%, a lot smaller than earlier bull market drawdowns, which noticed as a lot as 30%-50% drawdowns, exhibiting the asset is turning into extra mature.
In response to Lee, $70,000 is a line within the sand, which is a robust help degree. They seek advice from a strategy known as Fibonacci ranges, or retracement intervals, basically the place bitcoin pulls again from the place it began its rally. Lee additionally believes the $50,000 degree could be examined if the prior $70,000 ranges don’t maintain. Frequent Fibonacci ranges from the all-time excessive that analysts search for are 23.6%, 38.2%, 50% and 61.8%
Regardless of a short-term correction, Lee nonetheless thinks bitcoin can be one of many standout property for 2025 and stays bullish on end-of-year targets of $200,000 to $250,000.