Fundstrat’s Tom Lee maintains year-end target of $25,000 for Bitcoin (TIKER: BTC.EXANTE), but notes that the digital currency's painful start of the year isn’t over, Bloomberg reports.
A new report by Fundstrat Global Advisors LLC says Bitcoin will only show signs of bottoming closer to $5,873.
The drop in prices follows negative headlines on tightening regulation globally and decisions from Facebook and Google to ban ads on digital coin sales.
“When sentiment is this weak, the market is increasingly ’fire, ready, aim’ -- meaning, any headline today is likely to trigger selling," Fundstrat analysts including Tom Lee and Robert Sluymer wrote.
Bitcoin is down more than 60 percent from its high of almost $20,000 in December, and keeps sinking past key level after key level. Over the past eight days, Bitcoin has broken below support at $9,325, and Wednesday broke the $8,370 level. Its next support is at $7,535 followed by the February lows at $5,873, according to the report.
Past experience shows that March is seasonally the worst month for Bitcoin, rising only once in the last seven years. April is one of the strongest, rising five times in that period.
Meanwhile, Fundstrat maintains year-end target of $25,000 for Bitcoin. Tom Lee said last month he expects the cryptocurrency market to recover by the end of March.