What Happens Below $35,511
Technical analyst Mark Newton has put forward a bullish outlook for bitcoin if it falls below this point. He told that a decline under this would inevitability lead to a test of $32,950. Also adding that the price of the digital asset moving above $40,000 would be an important point for the bulls.Related Reading | Double Threat: Bitcoin And Ethereum, Start Of Bear Market Or Bullish Consolidation?
However, the market has seen massive sell-offs close to this price point in recent times that Newton’s predicted point for the bulls is yet to be hit. With the digital asset suffering so many price dips in such a short period of time, bitcoin looks more likely to fall below $35,511 than it is to give bulls a much-needed pull above the $40,000 point. The Fundstrat analyst explained that without reaching this point, the asset would remain on a downward trend. “Until $40,000 is exceeded on a daily close, it remains in a downward sloping pattern, and it’s tough to rule out further weakness technically speaking,” the analyst said. This reflects the cautious way of thinking that Newton is using to look at the market. At a point like this, there is no way to tell for sure what the market will do, so being wary is the best cause of action.Bitcoin Bottom Is Not In
The technical analyst also touched on the bitcoin bottom, sharing thoughts that deviated from current trends. Newton said that the bitcoin bottom is not in yet. Instead, the analyst believes that the bottom will come in over the next few months.Related Reading | Bitcoin Halving To Bring The Subsequent Crypto Frenzy
As for the recovery recorded following the market crash, he explained that it is only temporary. Furthermore, does not believe that it is an indicator that there will be an intermediate-term rally. “This minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun,” Newton added.
BTC trending at $36K | Source:Bitcoin’s price still remains firmly in the $36,000 territory, suggesting that the short-term rally might be over. Bearish sentiment is the order of the day with market sentiment falling deep into extreme fear. Bitcoin is trading at $36,800 at the time of this writing.
Featured image from CCN.com, chart from TradingView.com