The price of bitcoin continues to tumble, but one of the market’s biggest bulls isn’t fazed.
Tom Lee, managing partner at Fundstrat Global Advisors, said the big picture still has bitcoin, the No. 1 digital currency, in a bull phase. That’s even after a 40% decline from the start of 2018, and a 70% fall from its all-time high in December 2017, he said in a note to clients.
Lee compared the 70% decline to that of mid-2013, a retreat that was followed by a 700-plus day rally of more than 55,000%.
While maintaining a positive long-term outlook, the New York-based research firm has noticed some short-term technical red flags. “We have seen a lot of technical damage since March 6,” said Robert Sluymer, technical strategist at Fundstart.
Sluymer added that the failure to take out the important $11,750 level has worsened the short-term technical view. However, big picture, they see the February low of $5,922 as a major low, meaning it will be tough to breach.
“Weekly indicators that track one to two quarters are still positive. We think it’s trying to form a bottom,” he said. “A further silver lining is the short-term indicators are oversold.”
A slew of negative news has seen the price of digital assets come under immense pressure over the past two weeks. Bitcoin fell 10% on Wednesday, marking its eighth consecutive losing day out of the last 10. As Fundstrat sees it, the end of March can’t come soon enough.
“March is typically the worst month for bitcoin, rising 1 of last 7 years,” they wrote in sharing the following chart.