Bitcoin has rallied almost 40% since the beginning of the new year, However one analyst is warning regarding possible correction.
At the moment Bitcoin is trading at around $41k, nevertheless, we are getting newer and much higher price targets from analysts, for example, according to JPMorgan Chase Bitcoin could be reaching $146,000, and Billionaire Chamath Palihapitiya Says Bitcoin Will Surpass $200,000.
But according to one analyst, who has already nailed bitcoin price forecasts once, we could be facing a 50 percent correction soon.
In the study 2021, analysts at Fundstrat Global Advisors increased their price target to $40,000, which could be another cryptocurrency groundbreaking year. Bitcoin has already delivered on the call, rising nearly 40 percent to smash through $40,000, less than 10 days after the prediction.
As for the remainder of the year, however, according to Fundstrat Managing Partner Tom Lee, investors should prepare for turbulence that could hit downward with just as much pace before recovering in a possible quadrupling.
“It’s a hyper volatile asset,” Lee said in a Yahoo Finance Live interview. “Our risk asset roadmap this year is that stocks will be reasonably explosive out of the gate and peak sometime either in late January but around S&P 4,000 as late as April before a major drawdown takes place. If the S&P fell 10 percent, it could be 40 percent to 50 percent possible pullback for bitcoin.”
So how should investors proceed ?! Should they invest now or wait for a major correction? It’s hard to say. We have not seen major corrections since bitcoin passed $20k. One thing is most likely true: In the long run, Bitcoin will be reaching new highs, and $150k – $200k seem as inevitable, however, there might be a lot of corrections on the road to these price targets, so what we think would be the smartest idea for investors who want to catch bitcoin dips, is to start investing slowly. Invest 10% right now and then gradually continue adding little by little to your holdings. This way you’ll be able to catch The dips if there will be any, and if there won’t be price corrections you’ll still take advantage of the Bitcoin uptrend.
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