Bitcoin Could Hit Bottom in the Spring — Fundstrat
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Bitcoin Could Hit Bottom in the Spring — Fundstrat

6 months 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

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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.

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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.

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