This year’s cryptocurrency sell-off has done nothing to dent the optimism of Fundstrat Global Advisors head of research Thomas Lee.
Already one of Wall Street’s most outspoken Bitcoin bulls, Lee is sticking with his year-end forecast of $25,000, more than 390 percent above current levels. The rosy outlook is based on Bitcoin historically trading at 2.5 times its mining cost, which will rise to $9,000 by year end, he said during an interview in Taipei. Lee has at times been overly enthusiastic: his December call for the digital currency to reach$20,000 by mid-2018 missed the mark by about $14,000.
On the chart we see the price is on a strong support that has been tested many times. After the strong price action which it did a few days ago, I expect a new uptrend.
Chart: Used with permission of Bloomberg Finance L.P.