- Bitcoin has seemingly bottomed and a restoration rally might speed up if the inventory market hits new information, Fundstrat’s Tom Lee stated in a notice on Monday.
- Lee expects bitcoin to consolidate off its lows of $30,000 and finally attain $125,000 earlier than the top of the 12 months.
- “If S&P 500 surges to all time excessive, anticipate Crypto to rise to all time excessive,” Lee stated.
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Lee reiterated his view that bitcoin will exceed the $125,000 worth degree earlier than the top of the 12 months, based on the notice. Lee’s year-end bitcoin worth goal represents 241% potential upside from Tuesday morning ranges.
Bitcoin topped out at round $65,000 in mid-April before falling to a low of $30,000 over the past month. However Lee thinks the underside in bitcoin might lastly be in following quite a few risky weekend buying and selling classes. Lee famous that adverse headlines on bitcoin did not spur a sell-off within the cryptocurrency over the lengthy weekend, reinforcing Lee’s view that the underside in bitcoin is in.
“Regardless of one other set of ‘adverse headlines’ bitcoin truly rose $2,000 over the weekend… I am unable to assist however view this as reinforcing the probability bitcoin has bottomed, given unhealthy information just isn’t creating new lows,” Lee defined.
Lee’s bullish view on bitcoin is probably going solely getting stronger because the S&P 500 and Dow Jones are inside putting distance of latest file highs. Each indexes have been greater in Tuesday morning trades and inside 1% of their file ranges.
“If [the] S&P 500 surges to all time highs, anticipate crypto to rise to all time highs,” Lee stated.
However a bitcoin backside and new file highs for the inventory market does not imply the cryptocurrency will instantly surge again to its file highs, Lee warned. As a substitute, sideways consolidation between $35,000 and $60,000 “is smart,” based on the notice.
“We nonetheless see bitcoin exceeding $125,000 earlier than year-end 2021. However for now, we’re fastidiously watching bitcoin within the shorter time period. An increase above $40,000 would strengthen the case that $30,000 was the low and the low for 2021,” Lee concluded.