Tom Lee Predicts Short-Term Bitcoin Correction but Maintains Bullish Long-Term Outlook
Bitcoin (BTC) has been experiencing significant price fluctuations, moving between $90,000 and $100,000, which continues to impact investor sentiment—shifting from fear to greed.
On Monday, Bitcoin briefly fell below $90,000, but by Tuesday, it had rebounded to over $96,500, gaining more than 8%. Despite this volatility, Tom Lee, head of research at Fundstrat, told CNBC that he views the current correction as typical for Bitcoin.
“Bitcoin is down 15% from its recent highs, which is a normal correction for such a volatile asset,” Lee explained.
Data from Glassnode shows that Bitcoin’s drawdowns in the current cycle have been relatively mild, ranging between 15%-20%, much smaller compared to previous bull market corrections, which saw declines of 30%-50%. This suggests that Bitcoin is maturing and becoming less volatile over time.
Lee also identified $70,000 as a key support level for Bitcoin, calling it a “line in the sand.” He referenced Fibonacci retracement levels, a technical analysis tool that tracks potential levels for a price pullback after a rally. According to Lee, if Bitcoin fails to hold above $70,000, the next level to watch would be $50,000.
Despite the possibility of a short-term correction, Lee remains optimistic about Bitcoin’s long-term prospects. He continues to be bullish, maintaining an end-of-year target for Bitcoin in the range of $200,000 to $250,000.
