Bitcoin price has shown a steady recovery since its crash on January 24th and technical analysts at Fundstrat has projected that BTC price stands a good chance to nosedive in the next few months.
Bitcoin has rallied almost 18% after crashing to the weekly support level at $34,752. As per Fundstrat’s Mark Newton, their pricing model suggests that the largest cryptocurrency can hit a new low in the upcoming months. Warning investors, Newton said, “This minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun.”
Bitcoin’s price moving above $40,000 would be an important technical level to look out for bulls, he added. Meanwhile, a decline below the $35,511 price level would set up a test of $32,950, Newton added.
“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,” he explained
Bitcoin price movement was a nail-biter in the last week of January as it dropped to as low as $33,100. As per the data, BTC’s price plunged by $10,000 from 20th Jan to 22nd Jan. Bitcoin saw a downfall of almost 5%, trading around $36,700 at the press time.
Do Crypto Analysts Coincide With Newton?
An investor and analyst, @CredibleCrypto on Twitter said, Many are expecting a rejection around 40-44k and then a dump below sub 30k. I’m expecting a pullback at 40-44k but still expecting 30-32k to hold, and then a breakout to 50k+. Would be cool if we just grind through 40-44k on the first go too though $BTC.
Cointelegraph contributor Michaël van de Poppe said,
“If Bitcoin loses this level at $37Kish, I think it will start to drop fast towards the lower bound of the region around $34-35K,” . “It’s really dependent on the DXY on what we’re going to see on the crypto markets,” he added.
- What’s up Altcoins?
All the major altcoins extended their losses following Bitcoin. Solana (SOL) is the biggest loser among the top 10 coins trading at $96.68 down nearly by13%, while Polkadot (DOT) and Polygon (MATIC) were trading down by 10.80% and 8.5% respectively.
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