Fundstrat’s Thomas Lee lowered its forecast for bitcoin’s price at years end. According to Tom Lee, bitcoin won’t be able to touch the $25K level due to internal cryptocurrency conflicts like the Bitcoin Cash hard fork. These facts are outside of the scope of the market. But Lee still holds that bitcoin will rally at the end of the year.
Tom Lee Forecast Lowered
Tom Lee, the known cryptocurrency expert from Fundstrat, lowered today its forecast for bitcoin price. According to its last prediction made earlier, bitcoin would finish the year at $25K. But not, Lee has acknowledged that there is no way that bitcoin could reach that level.
Lee has used again a term known a “break-even” level, a price level that its company Fundstrat calculates every month. For him, this breakeven price is the one that holds a serious support level for the bitcoin price. They have calculated the breakeven price at $7K ad they part from there to evaluate the price for the next month.
Lee says that the normal level of trade for bitcoin should be 2.2 times the value of this theoretical break-even number. So doing the math, bitcoin prices at the end of the year should be in the vicinity of $15k. But things are not going so well for bitcoin, at least for now.
Bitcoin Market Price
Bitcoin has been trading consistently below this “breakeven” level since more than a month ago, with the market moving sideways and bitcoin losing its volatility. However, with bitcoin trading now under $6K, there is a pessimistic sentiment that could be reeling down the market.
For Lee, this is more an exception than the rule. This unconventional low price seems related to a selloff triggered by the hostile fork of Bitcoin Cash and a possible hash power redirecting from bitcoin to bitcoin cash.
Lee states that:
“While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism, But we believe the negative swing in sentiment is much worse than the fundamental implications.”
meaning that even with bitcoin under the breakeven level, these rules are still active to examine the market price of bitcoin.
Causes Of The Possible Leveling
Tom Lee has always been positive about the price of bitcoin. But what will cause this possible hike in prices in such a short time? Tom is bullish on the institutional side of things. There is the possibility of an ETF being approved before the end of this year. Also, the inclusion of institutional offers like Bakkt could propel the price in that direction.