Fundstrat analyst: Bitcoin's price recovery process could take several months

According to technical researcher Rob Sluymer of market research firm Fundstrat Global Advisors, the process of Bitcoin recovery can be a long way.

On Bloomberg on March 20, Sluymer did write that Bitcoin price action has suffered serious losses due to the recent plunge. Specifically:

“Cryptocurrency incidents last week causing panic that most appear with other properties even though was bonds, gold or stock. Lower highs and lower lows also happens with Bitcoin, shows long-term damage”.

However, Sluymer acknowledges that Bitcoin is still above the 200-week moving average and believes this is an important long-term structural support level for most assets. This index works with Bitcoin in both 2015 and 2018.

“Now technically, it seems Bitcoin is trying to bottom out but may need months to merge adjusted technical damage ”.

Bitcoin below $ 5,000 witnessed great buying pressure

Head of business development Vijay Ayyar at the Luno exchange pointed out the massive buying pressure on Bitcoin below $ 5,000, indicating a seller's exhaustion:

“This price is likely to be lower than the operating cost for many miners and we have seen the hash rate decrease. Miner better stop working at such a price”.

As Bitcoin approaches the expected halving within the next 2 months, Ayyar expects the price to reach $ 6,500 again before stabilizing in the range of $ 3,000 to $ 6,000 until the next bull run occurs. :

"This is a classic redistribution and very beneficial for Bitcoin price action in the future if we have an incentive to rise."

Yesterday, the Bitcoin price once broke $ 6,500 to trade above $ 6,700, up nearly 20% in 24 hours compared to the same time frame.

NHa Bitcoin investment change expectations

While the recent plunge has led many investors to doubt Bitcoin, the recovery that followed soon showed optimism. Founder and CEO Raoul Pal of Global Macro Investor looked hopeful about Bitcoin after his asset recovered about 80% in just one week.

As previously reported, Italy's Banco Sella launched a Bitcoin trading service under the Hype smart banking platform.

Bitcoin increased 78% amid the Corona outbreak

Bitcoin has taken very positive steps in the past few days, even as the epidemic evolved.

The price has reached a new weekly high of $ 6,900 on Coinbase. The bull run took place just a week after a massive sell-off, causing Bitcoin to collapse from $ 7,969 to as low as $ 3,858. However, the new buying pressure near the lows helped the price rebound and eventually increased 78% on Friday.


BTC / USD increase 78% | Source:

Regardless of what happens, the scale of Bitcoin's price increase remains unchanged for many people. Last week, BTC threatened to move to local bottoms when investors yearn for cash. Therefore, the current rise signals the worsening state of the global economy.

Interest rate minus

Dan Tapiero - co-founder of US-based investment management firm DCAP Holdings tried to explain the reason for the price increase. Macro investors pointed to negative interest rates as the Bitcoin pump catalyst, explaining that people now need to pay the US government to keep their money.

Central banks have recently intervened to control the recession spread by spread Corona virus. The US Federal Reserve, the European Central Bank and the Bank of England have introduced stimulus packages, changed the crossover of credit lines to purchase hundreds of billions of dollars in treasury and cut lending rates. Tapiero noted:

“Negative interest happened at US - Treasury bills in 6 months at -2bps. This means you need to pay the US government to deposit for 6 month term. Exchange rate Sound more and more weaken the dollar. Here is a nationalized phenomenon and negative but necessary at this time to stabilize the system ”.

He added: "Super price increases for Bitcoin".

“This is a joke. The European bank stock index, SX7E, plunged 50% in the past month and remains reduction 90% of the 2007 peak. European policy failed completely. Try something more dynamic? Remove the limit. Act instead of words. You are the reason cause Bitcoin succeeds ”.

Pullback Bitcoin is heavy

Bitcoin soared following similar upward moves in the financial markets. The central bank's latest action has helped revive global stocks, oil, bonds and gold, but many thinkers are concerned that these markets have not bottomed out yet.

Global market leader Chris Turner at ING to speak with FT that the market outlook is still uncertain and clearly inclined to the downtrend, as evidenced by the unknown Corona virus pandemic to what extent. The virus has infected more than 200,000 people worldwide and killed about 10,000 people.

The uncertainty has put Bitcoin in a similar situation. According to trader and analyst Teddy Cleps, buying cryptocurrencies is not a priority for everyone in the context of a pandemic and emphasizes that Bitcoin can decline despite reaching an attractive increase.

“Reasons I don't think BTC will increase on the first try:

- Strong selling pressure, many people are taking profits on the road go up to recover losses from dump terrible/suddenly

- Global fear of pandemic worsening; Buying cryptocurrencies is not a priority of the investor retail".

You can see the price of BTC here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Thuy Trang

According to AZCoin News

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