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Bitcoin Recovers to $12,000, Lee Expects Further Gains
It’s July 4th. You know what that means — fireworks, fireworks for Bitcoin (BTC) that is. According to a recent tweet from Thomas Lee of Fundstrat Global Advisors, the leading cryptocurrency may soon “see fireworks”, which, in the context of his Twitter timeline, suggests a strong move higher in the near future.
Case in point, in the tweet, Lee explained that since crossing above $10,000, the cryptocurrency market has been graced with “Level 10 FOMO”, which is a level of positive sentiment only seen during 3% of the asset’s history.
To be fair, Bitcoin has already beat the expectations of most analysts. As covered by this outlet last week, most analysts were projecting a strong downturn, but BTC is now sitting snug at $11,750 — up around 20% from the local bottom of $9,700.
You see, when BTC slipped from $13,800, its chart registered a series of signals deemed “bearish”. As reported by Ethereum World News previously, analyst Nunya Bizniz pointed out an interesting fractal (a previous bout of price action that plays out at different times) on Bitcoin’s one-day chart. He noted that 2018’s crash and 2019’s strong recovery is looking a lot like the price action seen in 2011 and 2012, which was the crypto market’s first full-fledged cycle.
During this period, Bitcoin rallied to new heights, fell by 94%, saw a rapid bounce by 260%, to then fall by 46%. Bizniz notes that if history is of any indication, Bitcoin could see a 46% decline, which would bring it back to the $7,000 range.
More importantly though, Bizniz noted in a later tweet that Bitcoin recently broke under a parabola that it has held for upwards of six months. This is notable, as the origin of this move stretches back to Bitcoin’s bottom of $3,150. For those unaware, each time BTC failed to hold a medium- to a long-term parabola, an 80% correction ensued.
So, now that a strong reversal is off the table, where exactly does Lee expect for Bitcoin to head?
While he didn’t make any explicit predictions in the aforementioned tweet, we can look to his previous comments to get some insight. Speaking to Wei Zhou of Binance, the prominent analyst noted that once $10,000 is breached, all proverbial hell will break loose in the cryptocurrency market. Lee, accentuating his optimism, went on to say that $20,000 and $40,000 should fall shortly after the achievement of $10,000.
Lee still seems to be closely eyeing $40,000, as, replying to a commenter, the Fundstrat analyst quipped that $50,000 may be crossed “sooner than most think… “
While some have suggested that much of the hypothesized buying pressure will come from retail investors, more and more data suggests that institutions will be the ones driving the rally. Speaking to Bloomberg earlier this week, Michael “Novo” Novogratz of Galaxy Digital claimed that pensions and endowments will be the ones driving Bitcoin past $20,000.
Title Image Courtesy of Unsplash
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