Now Is The Best Time To Buy Bitcoin In 2018, Says Expert
Remember Tom Lee? The managing partner and head of research at Fundstrat Global Advisors, who once said last year that Bitcoin could reach as high as $25,000 in five years, reiterated his bullish stance on the cryptocurrency in a publication today, stating that even though it plunged by 34% in just two days, Bitcoin’s recent price action can be seen as “normal”.
Explaining his rationale, Lee evidenced that the market had seen similar fluctuations in Bitcoin’s price for the past two years. He also pointed out that since mid-2016, there have been six rallies of more than 75% and six sell-offs exceeding 25%.
Source: Business Insider
According to Lee: “What happens in years in equity markets is months in the crypto world.”
Bitcoin’s price action since mid-2016 (as shown above) has shown that it is able to recover from the kind of drops we’ve seen for the past few days. This chart also resembles those of various tech stocks that have had tremendous growths over the past decade, but as Lee pointed out, any significant movement for Bitcoin happens in much shorter intervals compared to stocks.
Based on this, Lee sees now as a great opportunity to “buy the dip” because he believes Bitcoin would eventually reverse back to its previous highs and test new resistance levels.
“We think the best way to think about sell-offs is to look at it through the lens of retracements — how much of the prior rise is given back,” Lee wrote. “We view this $9,000 as the biggest buying opportunity in 2018 — and we would be buyers at levels around here.”
Coincidentally, Lee’s “prophecy” has come to fruition to some extent, as Bitcoin rallied by approximately 20% as of Thursday morning. But like we’ve noticed with cryptocurrency, this could change at any moment.
Beyond Bitcoin, Lee also added that he is extremely bullish on cryptocurrency in general, forecasting that this market could exceed $1.2 trillion.
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