Fundstrat Predicts Bitcoin Will Exceed $100,000 by Year-End
Tom Lee, head of research at Fundstrat, predicts Bitcoin will reach $100,000 by year-end. In a recent CNBC appearance, he discussed how the political landscape following Donald Trump's election could influence Bitcoin's role as a national reserve asset.
Optimistic Bitcoin Price Outlook
Lee emphasized Bitcoin’s security features and blockchain technology, positioning it as a viable alternative to existing financial systems. He stated, “I think comfortably over $100,000 makes sense before the end of the year.” His forecast aligns with historical trends observed during previous Halving cycles, which typically reduce new BTC creation rates and positively impact prices.
Key Support Levels Identified
Crypto analyst Ali Martinez noted that historical behaviors indicate significant price movements for Bitcoin. During the 2017 bull market, Bitcoin rose 156% beyond its previous all-time high before a -39% correction. In 2020, it increased by 121% prior to a -32% pullback. Based on these patterns, Martinez suggests Bitcoin might reach at least $138,000 before facing a major correction.
Martinez analyzed past trends, noting that after breaking its previous all-time high of $19,700 in 2020, Bitcoin surged by 26%, consolidated, then jumped to $40,000. Currently, Bitcoin has risen by 28% after surpassing its previous all-time high and has been consolidating for six days, indicating potential repetition of this pattern.
However, he cautioned about a possible steep correction due to rising greed among crypto enthusiasts, evidenced by increased Google search interest and over $5.42 billion in realized profits. From a technical analysis perspective, the TD Sequential indicator has issued a sell signal on Bitcoin's daily chart. The Relative Strength Index (RSI) indicates Bitcoin is currently overbought, suggesting a potential price pullback.
If a correction occurs, key support levels identified by Martinez are between $85,800 and $83,250, with additional levels at $75,520 to $72,880. To maintain a bullish outlook, Bitcoin must sustain daily closes above $91,900, potentially triggering a breakout toward $100,680.
As of this writing, Bitcoin is trading at $90,970, reflecting an increase of nearly 2% within the last 24 hours.
Featured image from DALL-E, chart from TradingView.com