Bitcoin Could Hit Bottom in the Spring — Fundstrat
Bitcoin

Bitcoin Could Hit Bottom in the Spring — Fundstrat

2m
2 years ago

Analyst Mark Newton says there are signs that the cryptocurrency is beginning to stabilize after a terrible start to 2022.

Bitcoin Could Hit Bottom in the Spring — Fundstrat

Daftar Isi

The bottom could be in for Bitcoin within the next few months, according to Fundstrat Global Advisors.

The world's biggest cryptocurrency is currently trading at $36,625.01 — down 46.76% from all-time highs of $68,789 seen in November.

Bitcoin is closely correlated to the stock markets right now — and Thursday's plunge is likely linked to the lackluster performance of the tech-heavy Nasdaq 100.

More than 90 companies in this index were in negative territory in early trading — led by Meta, which released some disappointing financials and gloomy forecasts after the closing bell on Wednesday.

Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts

Levels to Watch

Focusing on BTC, Fundstrat analyst Mark Newton says there are signs that the cryptocurrency is beginning to stabilize after a terrible start to 2022.

Although prices have managed to climb from lows of $33,184.07 to highs of $39,115.15 earlier this week, Newton believes it's too early to confirm that BTC has witnessed a turnaround in fortune.
Looking ahead, he regards $40,000 as a crucial level that bulls need to reclaim for further upward momentum. He went on to describe $35,111 as a crucial line in the sand — and warned a fall below this price could result in a retest around $33,000. Newton wrote:

"Until $40,000 is exceeded on a daily close, it remains in a downward sloping pattern, and it’s tough to rule out further weakness technically speaking."

Earlier this week, Morgan Stanley argued that BTC's pullback is perfectly normal in historical terms — but problems could emerge if the digital asset falls below $28,000. That would take BTC to a level that hasn't been seen since 2020.
A number of traders may only decide to jump back into the market when they see meaningful confirmation of a bullish trend — and here, the U.S. investment bank describes $45,000 as a target.

Beyond the uncertainty created by the Fed's plans to raise interest rates — and BTC moving in lockstep with Wall Street — a number of countries have recently been stepping up their regulation of cryptoassets.

19 people liked this article