Bitcoin market update: BTC/USD sits at $3,580, over 800% lower than its fair value
|- Fundstrat’s Tom Lee believes that Bitcoin will hit $25,000 some day.
- BTC/USD is lethargic in a narrow range.
BTC/USD is changing hands at $3,530, mostly unchanged both on a day-over-day basis and since the beginning of Monday. The market has been suspiciously calm during recent days, and there are no signals of the upcoming breakthrough as of yet.
While Bitcoin bulls struggle to take the coin above $3,600 handle, cryptocurrency enthusiasts are still waiting for $25,000. Speaking in the interview with Fox Business, the founder of The Fundstrat Tom Lee noted, that we were disappointed with the market momentum in 2018. Bitcoin didn’t reach $25,000 as expected to due to the big adjustment across the board, triggered by the collapse of the ICO market. Though he was sure that we would see Bitcoin changing hands at $25,000 because that’s the fair price of the asset.
Lee did not give specific time limits but noted that the recovery might take time. If history is a guide, a deep adjustment (over 70%) will lead to an inevitable pullback.
Looking technically, BTC/USD is capped by a psychological $3,600, which is followed by a stronger resistance created by DMA50 (currently at $3,665). Once it is cleared, the recovery may gain traction with the ultimate target at $3,800. This barrier needs to be taken to make the way towards $4,000 and to the recent 2019 high at $4,110.
Meanwhile, the Relative Strength Index (RSI) on a daily chart is flat does not imply a strong upside movement.
On the downside, the bears struggle to pass $3,500-$3,480 area, which includes the recent low of 2019). In this strong barrier is cleared, the sell-off may gain traction with the next target at $3,400 and $3,127 (2018 low).
BTC/USD, the daily chart
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