The well-established scenario continues, and after some time in a horizontal mode,the sale-off pushed through the $ 3300 mark.
For now, the price stays just below the level, but the fact that buyers did not bring the price back quick hints that there are not many supporters on the $ 3300 and soon we will test the main psychological support at $ 3000. What awaits us below $ 3000 – is the next psychological value at $ 2500, news agencies and forecasters prepared the crowd for this level pointing on it as on the main candidate for the bottom.
Trading Bounds: $ 3000 – $ 3500. Breakthrough below $ 3000 will send the price to the $ 2500.
🔹 Tom Lee and the fair value
Well-known Bitcoin-optimist and co-founder of Fundstrat Global Advisors Tom Lee is convinced that the fair value of the first cryptocurrency is in the range of $ 13,800 – 14,800, reports Bloomberg.
Nevertheless, BTC is currently trading at around $ 3300. Lee explains such low BTC values with the overwhelming growth of the last year, the “catastrophic” macroeconomic climate, as well as massive sales of ICO funds.
Analyst’s judgments about the fair value of Bitcoin in the range of $ 13,800 – 14,800 are based on the growing number of active addresses of BTC wallets, demand factors and various indicators of the use of the first cryptocurrency.
“Fair value is significantly higher than the current price of Bitcoin,” he wrote. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
Mass acceptance and recognition of Bitcoin as an asset class, in his opinion, are key factors for the growth of cryptocurrency after 2018. If the number of BTC wallets reaches at least 7% of the Visa user base of 4.5 billion accounts, then, according to the Tom Lee model, the fair price of the first cryptocurrency will be $ 150,000.
“We are tired of people asking us about target prices,” he said, declining to update his year-end forecast.