Robert Sluymer, technical analyst for market research and consulting firm Fundstrat Global Advisors, claimed that Bitcoin could take several months.
According to Fundstrat Global Advisors LLC, Bitcoin’s technical outlook is in poor condition and can take months to recover after the big drop last week.
The largest cryptocurrency is trading approximately 40 percent below the mid-February high. Bitcoin fell more than $ 3,000 in about 16 hours, especially between March 12 and 13. Currently, according to technical strategist Robert Sluymer, the price fell below the 2015-2020 uptrend and badly jeopardized the price movement. All this, of course, was due to the coronavirus that hit every element and economic growth, from stocks to bonds, from all assets to currencies.
According to Bloomberg, Sluymer wrote last week, “Even the big drop last week had a bad impact on bond assets such as bonds and gold and reflected the psychology of ‘save me from this’. Even the lower high or lower lows have been compromised and it seems that there will be a long-term sensitivity situation. Still, there is no need to write an apocalyptic scenario for the future. ”
“It will probably take months of consolidation”
Bitcoin has a significant level of long-term structural support for most asset classes and has managed to keep above the 200-week average working for BTC in both 2015 and 2018.
“We have to admit that Bitcoin will probably need consolidation for months to repair the current damage,” Sluyner said.
The price movement turned positive this week. The largest digital currency is trading above $ 6,600, with a 45% increase from Monday’s $ 4400 levels.
Vijay Ayyar, head of business development at the Singapore-based stock market Luno, also commented on the trend. Ayyar said, “There was a lot of buying pressure below $ 5000. We saw that sales were sold out there. These prices would not cover the costs of many miners. We also saw that hash rates drop. ” commented.
Ayyar said that as the expected ‘halving’ approach in the industry (a planned reduction in the Bitcoin mining rate to combat inflation) the price could rise to $ 6500, but then it would fall within a range of $ 3000-6000, and the next bull season would follow this period. method of redistribution. If there will be a price increase in the future, this decrease will be really healthy. ”
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