Thomas Lee, Co-founder of Fundstrat Global, shared his thoughts about the recent cryptocurrency market developments in an interview with Binance CFO Wei Zhou.
He believes that at this point, it is crucial for Bitcoin bulls to take out $10,000 level. Once it happens, the upside momentum will grow exponentially to take the price to $20,000 and even $40,000.
“If bitcoin somehow manages to get to [$10,000], ‘it’s very likely going to make a run to $40,000 within five months,” he said.
While it is hard to say, when this happens, the consequences will be enormous, as a sustainable move above this threshold will bring in big institutions to the market.
“Every institution is going to realize, look at $10,000 ‘it’s likely to go back to its all-time high, which is double. There are very few things that can double. So I think FOMO truly gets triggered once bitcoin hits $10,000,” Lee added.
Bitcoin’s technical picture
Psychological $8,000 serves as a strong barrier for BTC/USD at this stage as several attempts to take it out of the way discouraged bulls. At the time of writing, BTC/USD is changing hands at $7,868, down 1.2% in recent 24 hours. The strong support is created by $7,400 (the lower line of a daily Bollinger Band). Once it is cleared, the sell-off is likely to gain traction with the next focus on $7,300 and $7,280 (the lower border of the recent consolidation channel).