Fundstrat’s Tom Lee sees bitcoin’s (BTC) latest dip as a natural part of its market cycle and remains steadfast in his bullish outlook for 2025.
Bitcoin has been trading in a tight range between $90,000 and $100,000, testing investors’ resolve. After briefly falling below $90,000 on Monday, the leading cryptocurrency surged back above $96,500 on Tuesday, posting an 8% daily gain.
In a conversation with CNBC, Lee dismissed concerns about the recent drop, emphasizing that such movements are typical for bitcoin. “A 15% pullback is completely normal for an asset with bitcoin’s volatility,” he said.
Glassnode data supports Lee’s perspective, showing that this cycle’s corrections have been relatively mild, ranging between 15% and 20%. This is a sharp contrast to previous bull runs, where drawdowns often exceeded 30%-50%, highlighting bitcoin’s evolution as a more stable asset.
Lee identified $70,000 as a key support level, underpinned by Fibonacci retracement analysis. He cautioned that if this level fails, bitcoin could retest $50,000. Traders often use Fibonacci retracement levels, such as 23.6%, 38.2%, 50%, and 61.8%, to predict market turning points.
Despite the near-term fluctuations, Lee remains optimistic about bitcoin’s future. He reiterated his end-of-year price target, projecting that BTC could climb to $200,000-$250,000 by the close of 2025. “Bitcoin is still positioned to be one of the year’s best-performing assets,” Lee concluded.
