- Tom Lee, the noted bitcoin uber-bull, says that the once-hot cryptocurrency will break out to new record highs in July.
- He argues that the majority of bitcoin selloffs are "V-shaped," and says that recoveries take 1.7 times the length of the downturn.
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TOM LEE: Bitcoin will surge to new record highs by July
The noted bitcoin uber-bull argues that the majority of bitcoin selloffs are "V-shaped," meaning a recovery could be imminent.
Bitcoin's foremost bull is at it again.
Tom Lee, Fundstrat Global Advisors, says that the once-hot cryptocurrency will make a comeback for the ages and re-test record highs by July.
It would be an incredible rebound for bitcoin, which plunged as much as 70% after reaching an all-time high of $19,511 in mid-December. And while this may seem nuts, Lee has data to support his assertion.
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He analyzed the 22 prior occasions that bitcoin dropped more than 20% and found that, during bull periods, recoveries take 1.7 times the duration of a decline. If that trend holds, the cryptocurrency would achieve a full recovery in 85 days, which means July.
One caveat is that this is only true when bitcoin is in a bull phase. And while it may seem surprising that we're still in one, Lee argues that we are, citing a longer-term upward trend.
"73% of bitcoin bottoms are V-shaped," Lee wrote in a client note. "This recent 70% decline is severe," "We can see a case for bitcoin’s resilience here given the sharpness of the recent decline."
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