According to Rob Sluymer, a technical researcher at market research firm Fundstrat Global Advisors, the path from Bitcoin to recovery (BTC) can be long.
Per Bloomberg on March 20, Sluymer wrote
“ Last week’s crypto breakdown reflected the ‘get me out of everything’ panic that dominated all asset classes, be they defensive (bonds and gold) or not (stocks). […] Lower highs and lower lows are present for Bitcoin, resulting in a compromised, potentially fragile, long-term profile. “
Still, Sluymer admitted that Bitcoin remained above the 200-week average, which he believes is an important long-term structural support level for most assets. He also pointed out that this indicator worked for Bitcoin in both 2015 and 2018, adding:
“For the time being, we will again technically give Bitcoin the benefit of the doubt that it is trying to bottom out, but recognize that Bitcoin is likely to take months of consolidation to repair the current technical damage.”
Vijay Ayyar, the head of business development at crypto exchange Luno, pointed out that there was a large buying pressure for Bitcoin under $ 5,000, indicating the seller’s exhaustion:
“These prices may have been below ongoing costs for many miners, and we’ve seen hash rates drop. Miners are also better off buying Bitcoin at such prices, so that aspect could be there, too.”
As Bitcoin approaches the expected block reward halving in less than two months
“This is a classic redistribution and would be very healthy for future Bitcoin price promotions and if we had bullish momentum in the future.”
At the time of printing, Bitcoin’s price had already broken $ 6,500 to trade at $ 6,700, up nearly 20% in the past 24 hours.