That is the sentiment out of Fundstrat regarding Bitcoin's recent price action.

Fundstrat is an independent research boutique, providing market strategy and sector research. 

Their differentiated approach is based on what they call "fundamental strategy". Which loosely means that their research process combines both top-down strategy and bottoms-up fundamental analysis in order to develop a roadmap of practical and useful investment insights for their clients.

The firm is managed by Tom Lee, one of my favorite research analysts on the street.

If you have been following my blog for any length of time you have probably read something about Tom Lee over the last couple months. 

He has been a major bitcoin bull over the last year and a half, and has been pretty accurate with his trading calls over the same time period.

He has a longer term price target of $25,000 for bitcoin based on it taking some market share from the gold markets. His base case is that bitcoin takes 5% of the gold markets by 2022 which would equate to $25,000 per coin.

However, more recently he had actually turned neutral to slightly negative on bitcoin when it first ran up to $8,000 after the hard fork was cancelled.

Thinking that prices may have gotten slightly ahead of themselves.

At the time he said: 

"A few weeks ago, we turned short-term neutral on Bitcoin as the price level then (~$7,400) exceeded our estimate of fair value."

Recommending clients to take some profits or at least wait for a better entry point before putting more money to work.

That all changed with the recent dip we had after the SegWit2x upgrade was suspended.

His thoughts were something along the lines of this:

"Last week, Bitcoin fell to $5,600 and since then rebounded. In our view, this move to $5,600 cleaned up weak hands and we no longer feel caution is warranted... We recommend steady buying of Bitcoin at these levels."

Weak hands cleaned up?

Caution no longer warranted?

Recommend steady buying?

Basically he is saying that the dip washed out anyone that was looking for an excuse to take profits and because of that wash out, there is much less of a fear of a crash in prices now.

Because... It's already happened.

For that reason Tom Lee as well as others think that Bitcoin is ready to make another move higher.

Lee raised his price prediction to $11,000 by mid 2018 and encouraged his clients to start buying again at current levels.

There have been a number of positive developments in recent weeks. Including the ability of bitcoin to bounce back from the upgrade fiasco, CME to offer Futures products, and Square testing Bitcoin payments on its platform. 

All these developments have contributed to an extremely positive atmosphere for bitcoin and helped create the perfect storm for prices going higher in the near term.

Stay informed my friends and enjoy your holidays!

Sources:

https://cointelegraph.com/news/predictions-roll-in-as-tom-lee-sets-40-bitcoin-growth-by-mid-2018

Image Sources:

https://www.bitcoinisle.com/2017/08/23/blockchain-info-to-support-bitcoin-cash/

http://www.fundstrat.com/

https://www.reddit.com/r/Bitcoin/comments/2itvem/how_weak_hands_approach_the_bitcoin_bubble_cycle/

Follow me: @jrcornel