Despite a disappointing performance in 2022, top Wall Street strategist Thomas Lee, the co-founder of Fundstrat Global Advisors, after the bear market expects cryptocurrency to come back.
According to Lee, who recently spoke with CNBC, the crypto bear market is nothing new. He pointed out that in 2018 when Bitcoin’s value dropped by more than 70% from all-time highs, the cryptocurrency sector also went through a similar crisis.
According to his statement:
If we look back at that crypto winter when Bitcoin went from $17,000 to something around $1,200, that was the time when some of the best projects were created.
He goes on to add that the present cryptocurrency winter, which is purging the market of many unwanted participants, is a key period for the industry because the best ventures were created during the last bear market.
Furthermore, Thomas replied positively when asked if he still advocated buying Bitcoin. He made it clear that he did not think cryptocurrencies were extinct and that he was confident their advantages would ensure their continued existence.
He said that they talked about Bitcoin for the first time in 2017 and suggested that viewers put 1% of their money into it. At the time, Bitcoin was priced under $1,000. Without rebalancing, today’s position would account for 40% of the portfolio.
Bitcoin (BTC) Technical View Of Bear Market
According to Coinmarketcap statistics, BTC is presently trading at $16,517.98, up 0.03% in the past day and down 0.68% over the last seven. Additionally, a significant decline of roughly 25.07% in its 24-hour trading volume is being experienced.
Since its $69,000 all-time high in November 2021, Bitcoin has spent more than a year on a downward trend. Investors have seen losses of up to 77% due to BTC price performance, but how much lower can BTC actually fall?
Analysts and traders of bitcoin have long anticipated that the most prominent cryptocurrency would enter its most recent bear market in 2022. BTC has not provided any comfort after dropping from all-time highs to start the year at roughly $46,000, and as seen by TradingView data, it has now risen to levels last seen in November 2020.
With Bitcoin having dropped a maximum of 77% from its most recent top, the pair has now entered the historical bear market bottom zone. However, there may not be much more to go.
Filbfilb, the co-founder of Decentrader, also stated that if macroeconomic conditions deteriorate, BTC might reach $10,000 around the new year. That was before the FTX fiasco, though, and the fuel it added to the bear market fire has made him reconsider its position.
In a webcast with his colleague co-founder Philip Swift, Filbfilb identified probable bottoms as places of significant bid support. These differ, though; a sizable “ladder” of bids concentrates on $12,000–$14,000 and is situated slightly below the spot price. At the same time, final assistance may be as little as $6,000.