What to know

  • Fundstrat's Head of research Tom Lee, calls for end of year target for bitcoin between $200,000 to $250,000

  • Tom Lee sees a potential short-term correction based on Fibonacci levels for bitcoin as low as $70,000.

  • The consolidation between $90,000 and $100,000 for bitcoin (BTC), continues to play with investor sentiment, swinging from fear to greed.

On Monday, bitcoin fell below $90,000, while it is above $96,500 on Tuesday, up over 8%. Bitcoin bull Tom Lee, head of research at Fundstrat, told CNBC on Monday that he sees this current correction in bitcoin as normal.

"Bitcoin is down 15% from its highs for a volatile asset, which is a normal correction," he said.

Glassnode data shows that bitcoin in this current cycle has seen relatively mild drawdowns of around 15%-20%, much smaller than previous bull market drawdowns, which saw as much as 30%-50% drawdowns, showing the asset is becoming more mature.

According to Lee, $70,000 is a line in the sand, which is a strong support level. They refer to a methodology called Fibonacci levels, or retracement periods, essentially where bitcoin pulls back from where it started its rally. Lee also believes the $50,000 level can be tested if the prior $70,000 levels do not hold. Common Fibonacci levels from the all-time high that analysts look for are 23.6%, 38.2%, 50% and 61.8%

Chart

BTC: Fibonacci Level (Glassnode)

Despite a short-term correction, Lee still thinks bitcoin will be one of the standout assets for 2025 and remains bullish on end-of-year targets of $200,000 to $250,000.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

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