Analyst: Bitcoin Retracement Is a Healthy Consolidation Phase, Maintains Year-End Price Target of $200,000

BlockBeats News, January 14th, Former Chief Equity Strategist at JPMorgan and Head of Research at Fundstrat, Tom Lee, said in an interview with CNBC on Monday that he believes the current Bitcoin correction is normal. He stated: "Bitcoin has dropped 15% from its high point, which is a normal adjustment for an asset with high volatility."

Glassnode's data indicates that Bitcoin's retracement in the current cycle is relatively mild, around 15%-20%, much smaller than the 30%-50% retracements seen in previous bull markets, showing that the asset is becoming more mature. Lee mentioned that $70,000 is a key support level. He referenced an analysis method called Fibonacci levels, or retracement levels, which essentially refers to where Bitcoin retraces from its upward starting point.

Lee also believes that if the $70,000 support level does not hold, the $50,000 level could also be tested. Fibonacci retracement levels commonly used by analysts include 23.6%, 38.2%, 50%, and 61.8%. Despite the short-term adjustment, Lee still believes that Bitcoin will become an outstanding asset by 2025 and maintains a bullish year-end target, predicting a price range of $200,000 to $250,000.