Bitcoin found itself in a struggle to remain above $10,000 Friday, temporarily slipping below that mark even as one prominent analyst predicted the No. 1 cryptocurrency was headed for a summer bounce.
Bitcoin BTCUSD, +6.45% was up 1% in recent action at $10,006.54, having traded between an intraday high of $10,293.44 and a low of $9,718.59, according to CoinDesk. The muted price action comes a day after bitcoin pushed back above the psychologically important level of $10,000 for the first time since early February.
Since the start of the year, bitcoin has lost about 26% of its value, with renewed concerns about regulation haunting cryptocurrencies. However, a noted bull for bitcoin, Tom Lee, managing partner and head of research at Fundstrat Global Advisors, has predicted that the cryptocurrency will revisit record highs by July 2018.
In fresh research, Lee examined 22 pullbacks of more than 20% for bitcoin, finding that recoveries tend to take about 1.7 times the duration of a pullback. He said $9,000 should mark the major low for bitcoin.
“In general, we see 2018 being a strong year but we see the larger and more established blockchains growing in dominance in 2018—hence, better upside for ETH and BTC over the FS CryptoFX indices,” Lee said
Lee, a bitcoin bull, in January predicted the cryptocurrency would hit $25,000 by the end of this year, and $125,000 by 2022, according to his model for valuing of bitcoin. Lee became cautious on the cryptocurrency in October as it shot past his bullish forecast of $6,000, but then turned bullish again in November.
Lee maintains his year-end price target of $25,000, and sees it hitting $20,000 by mid-2018.
Bitcoin has also moved up as global equities have regained their footing after a sharp pullback a week ago.