Key Insights

• Tom Lee from Fundstrat forecasts a Bitcoin target between $200,000 and $250,000 by year-end.
• He anticipates a potential short-term price drop to around $70,000 based on Fibonacci analysis.

The ongoing price variation of Bitcoin (BTC) between $90,000 and $100,000 is affecting investors’ emotions, oscillating between uncertainty and optimism. After decreasing below $90,000 on Monday, the price rebounded to over $96,500 by Tuesday, a rise of more than 8%. Tom Lee mentioned on CNBC that this adjustment is typical for the asset:

“Bitcoin has dropped 15% from its peak, which is a standard correction.”
(Translation: Bitcoin is down 15% from its highs for a volatile asset, which is a normal correction.)

Data from Glassnode reveals that recent Bitcoin cycles have experienced milder corrections of 15%-20%, significantly lower than earlier bull markets, which faced declines of 30%-50%. Lee considers that $70,000 is a critical support level, with $50,000 as a possible checkpoint if this level fails. The Fibonacci retracement indicators often referenced are 23.6%, 38.2%, 50%, and 61.8%.

Regardless of a minor correction, Lee maintains that Bitcoin is poised to be among the leading assets in 2025, staying optimistic about the end-of-year projections between $200,000 and $250,000.