Time to buy Bitcoin, Tom Lee says as BTC/USD hovers above $4,100
|- BTC/USD retraced from the recent high, but still above $4,000.
- Fundstrat's Tom Lee retains optimism.
Bitcoin has settled above critical $4,000 for the first time since October 23. The coin flew as high as $4,345 on Wednesday before settling down at $4,120 by press time. The digital asset No.1 gained over 8% in recent 24 hours; however, on the intraday basis, BTC/USD is demonstrating bearish momentum with nearly 2% of losses since the beginning of the day.
Meanwhile, the head and the founder of Fundstrat Tom Lee believes that the sell-off is a good time for long-term investors as it creates a buying opportunity. He is still optimistic about the cryptocurrency and believes that it will gain mass adoption as an asset.
“[We] have a price correction taking place, which has caused the price to fall even below its 200-day, but if you’ve got time, it will arise. It will not happen within three months, or one year, but in two to three years, and this is the golden time to be in crypto. As soon as Bitcoin crosses its 200-day, we know there will be a flood of money coming,” Lee explained speaking at BlockShow Asia conference on Wednesday.
Bitcoin's technical picture
From the short-term point of view, BTC/USD is supported by SMA200 (1-hour) at $4,100. Once it is broken, the downside may be extended towards $4,000. The coin needs to stay above this handle to retain positive bias and a chance to retest Wednesday's high of $4,345. On the upside, we need to move beyond congestion zone $4,500 to proceed to $4,900 (SMA100, 4-hour) and the next psychological hurdle $5,000.
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