Bitcoin (EXANTE: Bitcoin) may be touching new highs again by July, Bloomberg quotes Fundstrat Global Advisors LLC’s Tom Lee as saying.
According to Lee, Bitcoin bottoms are “V-shaped,” and thr recent fluctuations follow that pattern.
Based on an analysis of the 22 corrections of 20 percent 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.
“This recent 70% decline is severe,” he wrote. “We can see a case for Bitcoin’s resilience here given the sharpness of the recent decline.”
Lee says 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.
Bitcoin tumbled 70 percent from its on Dec. 18 high of almost $20,000 to the Feb. 6 low of about $6,000, but has since recovered and is trading around the $10,000 level.