Fundstrat forecasts Bitcoin to hit a local bottom

In the coming months, Bitcoin prices, with a high probability, could reach a local bottom, but investors should proceed with caution. Bloomberg writes, citing Fundstrat managing director Mark Newton.

In the last few days, Bitcoin has stabilised after an update to the local minimum below $33,000. According to Newton, this modest rebound may be illusory and does not signal the start of an ‘intermediate rally’.

Among the key technical levels for the bulls, he highlighted $40,000. The analyst said that if prices fall below $35,511, there is a chance that Bitcoin will test the $32,950 level.

“As long as the daily close does not exceed $40 000, Bitcoin remains in a downtrend, and technically it’s hard to rule out further weakness,” Newton noted.

At the time of writing, Bitcoin was trading near $36,400. In the last 24 hours, the asset’s price fell by 5.5%, according to CoinGecko.

Earlier, trader Michaël van de Poppe noted that if Bitcoin falls below the $37 000 level, the price will start to fall quickly toward the $34 000–$35 000 range.

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. pic.twitter.com/nMSdQt2J0H

— Michaël van de Poppe (@CryptoMichNL) February 2, 2022

Analysts at JPMorgan lowered Bitcoin’s fair value from $150 000 to $38 000.

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