Crypto veteran Bobby Lee says Bitcoin (BTC) is at risk of a far deeper correction, warning the flagship crypto is “very likely” to break below key support in the coming weeks.
In a new interview with Bloomberg Television, the Ballet CEO says Bitcoin’s recent volatility has been driven largely by leveraged trading across spot, futures and options markets, rather than long-term investment flows.
Lee points to the $60,000 level as a major liquidation zone, where another swath of leveraged long positions could be forced out of the market.
“I think very likely in the next few weeks it will breach below $60,000 and probably support level of around $50,000, $55,000 – and for the rest of the year could go lower, too.”
Lee says BTC has clearly entered bear market territory after topping near $126,000 several months ago, noting that long-position holders “are going to be in for pain in the short term.”
Despite the near-term warning, Lee remains structurally bullish on Bitcoin’s long-term prospects as a fixed-supply store of value.
When asked what true capitulation would look like, Lee says a final bottom could come if Bitcoin falls 80% from its peak, potentially into the $20,000 range.
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