According to Tom Lee , bitcoin’s price will increase until reaching a new high in July this year. The Fundstrat Global Advisors LLC managing partner and head of research seems to be sure that the digital currency will be able to make a comeback by the middle of the year.
An important thing to mention in this context is that this time , the prediction made by Lee seems to be backed by data. The head of research has analyzed all the prior occasions in which the price of bitcoin suffered a significant drop. This has happened on 22 occasions and the price of bitcoin dropped by more than 20% each time.
An analysis of the 22 corrections of 20% or more that the digital coin has seen since 2010 , Lee determined that in “bull” periods , Bitcoin takes about 1.7 times the duration of its decline to recover.
That time frame implies that it will take 85 days for the cryptocurrency to fully bounce back from its latest plunge , which lasted for 50 days—meaning it should rise to fresh records by midyear.
Lee said $11,000 was becoming a support price for bitcoin. He said the next downward support levels would be $10,131 , $7,918 and approximately $7,000.
As per Lee , the period of recovery for the price of the cryptocurrency takes 1.7 times the duration of a drop. This is actually how Lee reached the July prediction. He claimed that the digital currency could achieve a full recovery in 85 days , which is of course close to the July period.
Bitcoin might raise too high till July.