Fundstrat analyst: Bitcoin market recovery may take several months

Author: Liang CHE

Source: bitpush.news

Crypto market analysis firm Fundstrat Global Advisors LLC believes that it may take months for Bitcoin to recover after its plunge last week.

According to Bitpush data, although Bitcoin, the largest cryptocurrency by market value, has rebounded after the plunge, it is still 40% away from its high in mid-February. Fundstrat technical analyst Rob Sluymer believes that it has now fallen below the rising channel from 2015 to 2020, which has "severely affected" the price trend. Currently, the global coronavirus is sweeping across all assets from stocks to bonds.

“The cryptocurrency crash over the past week is a reflection of investor panic that has dominated all asset classes, whether they are defensive assets such as bonds and gold or non-defensive assets such as stocks,” Sluymer wrote in a report. “Bitcoin has made lower highs and lower lows in the crash, so it will be vulnerable in the long run.”

Sluymer said it’s not all bad news though, as Bitcoin has remained above its 200-week moving average, which he sees as an important long-term structural support level for most asset classes and which served as support for the cryptocurrency in 2015 and 2018.

He said, “For now, technically, we would again consider Bitcoin to be bottoming and it may take several months of consolidation for Bitcoin to recover its losses.”

“We can see a lot of buying pressure below $5,000, which is a clear sign that sellers are exhausted,” said Vijay Ayyar, head of business development at cryptocurrency exchange Luno in Singapore. “For many miners, such a bitcoin price may be below the cost of operation, so we see a decline in hash rate.”

With the Bitcoin block reward halving approaching, Ayyar believes that the price of Bitcoin could reach $6,500 again and then continue to consolidate between $3,000 and $6,000 before the next bull breakout.

Reprinting must indicate the source.

Disclaimer: All articles on Bitpush only represent the author's views and do not constitute investment advice. Investment is risky and the consequences are at your own risk.