Bitcoin (BTC) to become fast and furious once $10,000 is broken - Tom Lee

  • The expert believes that $10,000 is a critical barrier for Bitcoin’s bull trend.
  • The short-term recovery is still capped by $8,000 handle.

Thomas Lee, Co-founder of Fundstrat Global, shared his thoughts about the recent cryptocurrency market developments in an interview with Binance CFO Wei Zhou.

He believes that at this point, it is crucial for Bitcoin bulls to take out $10,000 level. Once it happens, the upside momentum will grow exponentially to take the price to $20,000 and even $40,000.

"If bitcoin somehow manages to get to [$10,000], 'it's very likely going to make a run to $40,000 within five months," he said.

While it is hard to say, when this happens, the consequences will be enormous, as a sustainable move above this threshold will bring in big institutions to the market.

"Every institution is going to realize, look at $10,000 'it's likely to go back to its all-time high, which is double. There are very few things that can double. So I think FOMO truly gets triggered once bitcoin hits $10,000," Lee added.

Bitcoin's technical picture

Psychological $8,000 serves as a strong barrier for BTC/USD at this stage as several attempts to take it out of the way discouraged bulls. At the time of writing, BTC/USD is changing hands at $7,868, down 1.2% in recent 24 hours. The strong support is created by $7,400 (the lower line of a daily Bollinger Band). Once it is cleared, the sell-off is likely to gain traction with the next focus on $7,300 and $7,280 (the lower border of the recent consolidation channel).

BTC/USD, the daily chart

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.