According to a crypto news report today, a Fundstrat Global Advisors analyst explained that bitcoin could take ‘’weeks, if not months’’ to recover from the technical damage caused by the recent collapse.
Fundstrat’s analysts Rob Sluymer predicted that the recent collapse of Bitcoin has brought the crypto market in a ‘’deeply oversold’’ place and long-term technical indicators are not favorable at the moment.
He continued by saying that Bitcoin will likely go through a ‘’multi-month rally’’ by saying:
“This week’s breakdown produced significant technical damage that will likely take weeks, if not months, to repair to create a durable enough price ‘structure’ to support a multi-month rally.”
Just 24 hours ago, Bitcoin declined below the $5,600 price mark for the first time since October 2017. It looks like losing the support level of $6,000 is a dangerous motion for many industry players especially those who have a business model that is supported on a client pool.
The market slump caused many shares of crypto companies to decline by more than 3 percent.
However, Rob Sluymer continued to explain that the year-end trend is not broken yet and that stocks of the sectors that are hit the hardest are expected to grow. Earlier this year as well, Tom Lee said he believes that by the end of 2018 Bitcoin will trade between $22,000 and $25,000 and that he expects the volatility to be much higher.
In November 2017, Michael Novogratz, the CEO of Galaxy Digital claimed that Bitcoin has to ‘’take out’’ $6,800 if it were to reach $9,000 by the end of the year. He also predicted that this major cryptocurrency could reach up to $20,000 or more in 2019.
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