According to a technical analyst at Fundstrat, bitcoin has a decent opportunity of bottoming out in the coming months. After falling nearly 50% from its November high, the largest virtual currency has lately stabilized.
As per Mark Newton of Fundstrat, there’s a “good possibility” that Bitcoin will hit the bottom, based on a price structure.
Nonetheless, he warned against getting too bearish right now. Newton believes it is too early to expect a new intermediate-term rally after this slight two-week rebound.
Bitcoin’s Chances of Bottoming out in the Next Few Months
Prices shifting above $40,000 would indeed be essential for bulls, he added, as one of the important technical levels to observe. He predicted that a drop below $35,511 would lead to a test of $32,950, or around the intraday low of January 24.
Bitcoin has fallen in the last several weeks as a result of a global sell-off in risk assets due to growing fears of a hawkish Federal Reserve. As more conventional investors enter the market, tokens are becoming more correlated with assets.
Sheena Shah, the bank’s head of crypto exchange research, has stated that assessing the fair market value of digital currencies is difficult due to their speculative nature and reliance on the large supply of US dollars and central bank liquidity.
The analysts wrote in the comment that if bitcoin’s price falls below $28,000, the market may see a further weak spot. Also, the $45,000 level is a price to keep an eye on because it would indicate that the current downtrend has reversed.
Following the latest sell-off, JPMorgan Chase analysts lowered their long-term bitcoin target price from $150,000 to $38,000, as their preliminary forecast was centered on BTC’s volatility falling.
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