Tom Lee, the co-founder of Fundstrat Global Advisors, has recently come forward to make a fresh short-term price prediction – and it is a pretty aggressive prediction.
Lee had been in an interview with Wie Zhou, CFO of Binance, in which he had cited his very optimistic roadmap, stating that he believes Bitcoin can reach $40K within 5 months of its breaking above $10K.
The 10K price level has been a highly anticipated benchmark for Bitcoin, as it’s halfway to the $20K ATH level and would show that the market is strongly recovering. However, according to Lee, once price action manages to reach the $10K level and continue higher, FOMO will kick in quickly. He went on to state that it will be “fast and furious” on the run toward $20,000. Lee continued to add that after $10K is“reclaimed,” he expects Bitcoin to reach $40K within 5 months.
The reasoning behind this is due to the fact that after FOMO kicks in, historically, the price will surge from 200% to 400%.
Bitcoin has started to recover from the recent 7% price fall witnessed over the past week. The cryptocurrency has seen an epic price explosion of 102% over the past 90 trading days, which most certainly leans toward the bullish side. Bitcoin currently holds a $141 billion market cap value as it climbs its way back toward the $150 billion market cap.
Let us continue to analyse resistance on the way up toward $10K for BTC/USD.
Bitcoin Price Analysis
BTC/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Analyzing the daily BTC/USD chart above, we can see that Bitcoin has recently managed to bounce back from our expected support at the $7,570 support level. This is the 3rd time that price action has managed to hold at this support, and this is deemed strong moving forward. However, we can see that BTC/USD is now facing resistance at the $8,000 level.
Where Is the Resistance Toward $10K?
If the buyers can push the market above the resistance at $10,000, we can expect immediate higher resistance above to be located at $8,265 – a level that caused problems for BTC during May 2019. Above $8,265, further higher resistance is then expected at $8,600, $8,888, and $9,000.
If the buying continues above $9,000, further resistance is then expected at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue), priced at $9,326 and $9,810, respectively. If the bulls can clear this resistance, they will be free to reclaim the $10,000 level.