Analysts Think Bitcoin Could Bottom but How Low Can it Go?
Assessing the Bitcoin Bottom
A recent Bloomberg article reported that according to data provided by an analyst at Fundstrat headed by Tom Lee, Bitcoin price could see the cycle bottom in a few months.
Fundstrat Global Advisor’s Mark Newton was reported as saying that there is ‘a good likelihood’ for Bitcoin to reach a price bottom in the coming spring.
Additionally, the analyst has warned against getting bullish on the king coin at the moment, since a new mid-term rally has not begun yet and the minor two-week bounce that BTC saw does really mean that a rally is in play.
“This minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun”
While many argue that BTC testing the $32.9K mark on January 24 could be a BTC bottom, there was considerable skepticism around this stance. At press time, with Bitcoin losing close to 4% price and the global crypto market cap at $1.68 trillion, a 4.89% decrease over the last day, BTC could see a pullback in the near term.
Another Price Pullback in Play?
Generally, over the last few months, weekends have been marked with choppy price action for Bitcoin, Ethereum, and the larger market. The most recent instance was the ‘Black Friday’ crypto crash that wiped out $136 billion on January 22.
For now, while BTC’s price is maintained above the $36K mark a decline under the $35.5K level could push Bitcoin to the $32K zone which would make a market cycle bottom.