- Bloomberg TV
- 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.
Bitcoin‘s foremost bull is at it again.
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.
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.”