Famous credit analyst Thomas Lee said that before Bitcoin re-enters the bull market, it needs to wait for global stocks to hit new highs.
This week, the cryptocurrency market ushered in an avalanche, raising concerns in the industry. Fundstrat founder Thomas Lee shared his views on Twitter. He said that the market is already overbought and needs to see market sentiment. The BMI index has been suggesting this since July, and it will take a while for the S&P 500 to end its “macro trend” trend.
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The Standard & Poor's 500 index has fallen before Bitcoin fell on Tuesday, and Lee believes the two are closely related. He said:
"The downturn in Bitcoin occurred after the sell-off in the stock market."
He also acknowledged that this once again supports the notion that Bitcoin underperforms in a “macroscopically unclear” environment.
For the late trend in the bitcoin market, Lee believes that:
"The S&P 500 needs to hit a new high before Bitcoin regains strength."
Lee's connection to the Bitcoin market and the S&P 500 is the latest explanation of current market trends. There have been several theories in the industry explaining the plunging of the crypto market this week, including the bad response of Bakkt's bitcoin futures, Bitcoin. Technical indicators are bearish, as well as the impact of some geopolitical factors.
For the subsequent market trends, there are still differences in the industry.
Bitcoin critic Peter Schiff believes that the top of Bitcoin has now formed and is likely to continue to fall to $4,000. Arcane Research, a crypto research firm, also believes that bitcoin prices are likely to fall further as the CME Bitcoin futures contract settlement date comes.
However, some analysts believe that there will be a lot of buying below $8,000, which will form strong support in this area.
Analyst Michaëlvan de Poppe said that the price of Bitcoin has stabilized and that holding the 200-day moving average is a positive sign. Although the market still looks strong, it needs to break through and close at $8,800 to consolidate positive sentiment in the market.
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By Liang CHE
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