Bitcoin’s recent price movements between $90,000 and $100,000 have significantly influenced investor sentiment, oscillating between fear and greed. On Monday, Bitcoin dipped below $90,000 but rebounded to over $96,500 by Tuesday, marking an increase of more than 8%. Tom Lee, head of research at Fundstrat, views this 15% decline from its all-time high as a typical correction for such a volatile asset.

Data from Glassnode indicates that Bitcoin’s current cycle has experienced relatively mild drawdowns of approximately 15% to 20%, which are less severe than the 30% to 50% declines observed in previous bull markets. This trend suggests a maturing asset with reduced volatility.

Lee identifies $70,000 as a critical support level, based on Fibonacci retracement levels—a technical analysis tool that predicts potential pullbacks. He also notes that if the $70,000 support does not hold, Bitcoin could test the $50,000 level.

Despite the short-term corrections, Lee remains optimistic about Bitcoin’s long-term prospects, maintaining a bullish outlook with end-of-year targets ranging from $200,000 to $250,000 for 2025.

In summary, while Bitcoin’s price fluctuations continue to influence investor sentiment, experts like Tom Lee perceive these movements as typical for a volatile and maturing asset. The identification of key support levels and the application of technical analysis tools like Fibonacci retracement provide valuable insights into potential future price movements. Lee’s sustained bullish outlook underscores the confidence some analysts have in Bitcoin’s long-term value proposition, despite short-term market corrections.

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