Bitcoin has a good possibility of bottoming in the upcoming few months, according to a technical analyst at Fundstrat.
BTC USD down -0.74%
The largest cryptocurrency has moderated after plunging nearly 50% from a record in Nov. In reference to a pricing model tracked by Fundstrat’s Mark Newton, there is a good possibility that a low for Bitcoin is coming in the next few months.
Newton further cautioned against getting bullish now, stating that this is a minor two-week bounce and might be premature to expect the start of a new intermediate-term rally.
Among key technical indicators to observe, prices moving past $40,000 would be an important signal for bulls. A further decline below $35,511 would set up a test of $32,950.
Bitcoin has dropped in recent weeks amid a global plunge in risk assets on rising concerns about a hawkish Fed. Tokens, such as Bitcoin and Ether, are growing more linked with assets like stocks.