Rob Sluymer, a technical researcher at market research firm Fundstrat Global Advisors, said Bitcoin’s recovery path could be long.
According to a Bloomberg report on March 20, Sluymer recently stated that the recent price drop has seriously affected the market trend of Bitcoin. He wrote:
“The collapse of the cryptocurrency market over the past week reflects a panic of investors wanting to get rid of everything in all asset classes, whether it is defensive assets (bonds and gold) or non-defensive assets (stocks). [… …] Both the high and the low of Bitcoin’s price have fallen, and this situation may continue for a long time, and Bitcoin may become vulnerable. “
However, Sluymer also acknowledged that Bitcoin is still above its 200-week average and considers it to be the main long-term structural support level for most assets. He also pointed out that during 2015 and 2018, the price of Bitcoin also encountered such an indicator, adding:
“For now, technically speaking, we will once again assume that Bitcoin will bottom out again, but also think that Bitcoin may need months of adjustments to repair the current technical loss.”
Bitcoin below $ 5,000 has strong buying
Vijay Ayyar, head of business development at cryptocurrency exchange Luno, points out that bitcoin with a price below $ 5,000 has a strong buying interest, which shows that sellers are already weak:
“For many miners, this price may be lower than operating costs, and we can see that the computing power has dropped. Miners are better off buying bitcoin at current prices, so this may also happen.”
With less than two months left before the halving of Bitcoin block rewards, Ayyar expects its price to reach $ 6,500 again and then stabilize between $ 3,000 and $ 6,000. His conclusion was:
“This situation is a typical redistribution, which is very beneficial for the future trend of Bitcoin price, if it can maintain the bullish momentum.”
As of press time, the price of Bitcoin has exceeded $ 6,500, reaching $ 6,700, and has increased by nearly 20% in the past 24 hours.
Bitcoin investor expectations change
Although the recent decline in the cryptocurrency market has led to a loss of confidence in Bitcoin, signs of a rebound not long after that indicate that some investors have regained optimism. Global Macro Investor founder and CEO Raoul Pal recently stated that he is very bullish on Bitcoin, as Bitcoin has recovered about 80% of its price in just one week.
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Source: MARS FINANCE