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.
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.
