The consolidation between $90,000 and $100,000 for bitcoin (BTC) continues to play with investor sentiment, shifting from fear to greed.
On Monday, bitcoin fell below $90,000, while it is above $96,500 on Tuesday, up more than 8%. Bitcoin bull Tom Lee, head of research at Fundstrat, told CNBC on Monday that he considers this current Bitcoin correction to be normal.
“Bitcoin is down 15% from its highs for a volatile asset, which is a normal correction,” he said.
Data from Glassnode shows that bitcoin in this current cycle has seen relatively mild declines of around 15-20%, much lower than previous bull market declines, which saw up to 30-50% declines, which shows that the asset is becoming more mature.
According to Lee, $70,000 is a line in the sand, which is a strong support level. They’re referring to a methodology called Fibonacci levels, or retracement periods, essentially where Bitcoin pulls back from where it started its rally. Lee also believes that the $50,000 level may be tested if previous levels of $70,000 do not hold. Common Fibonacci levels relative to the all-time high analysts are looking for are 23.6%, 38.2%, 50% and 61.8%.
Despite a short-term correction, Lee still believes bitcoin will be one of the standout assets for 2025 and remains bullish on year-end targets of $200,000 to $250,000.
