Bitcoin May Fall Further, Analysts Says, Despite 15% Bounce By

© Reuters. – After continuing the downturn that began last week after the Fed meeting to yesterday’s low of $ 29,400, the index has recovered slightly, testing the $ 34,000 threshold at the time of this writing, and has therefore rebounded more than 15% in ten hours.

Remember that some pieces of information have fined Bitcoin for a week, but that yesterday was not a reason for any important new catalyst.

The lack of new negative information gave free rein to buyers who were pegged to $ 30,000 and prevented the cryptocurrency from falling too sharply.

However, it is too early to say that an uptrend should be expected.

Indeed, they will have to break through several key resistances before canceling the clearly bearish chart profile. The $ 35,000 resistance is the first of these thresholds, ahead of the $ 40,000 psychological threshold, followed by the 200-day moving average, which is currently $ 43,250.

Thus, at this point in the short term, a new test worth $ 30,000 is possible.

As for the reaction of analysts after yesterday’s drop, opinions are divided.

Investors will think “Bitcoin is over.”

“Bitcoin has broken through a significant level of support and it is likely that we will see even more panic in the market as investors think this could be the end of Bitcoin,” wrote Naim Aslam, chief market analyst at AvaTrade.

“But investors should remember that bitcoin is a type of asset that has fought these pessimistic views many times. The current sale may be an opportunity for many investors to fund their wallets with bitcoins, which are being sold at a very low price, ”the analyst advises. …

A drop to $ 25,000 is possible, but the long-term outlook will hold.

Galaxy Digital CEO Mike Novogratz, whose company invests in all kinds of cryptocurrencies, told Squawk Box earlier Tuesday that he is “less satisfied” with bitcoin than he was during its peak growth a few months ago. He acknowledged that $ 25,000 could be the next level of support. However, he said he was “not nervous” about Bitcoin’s long-term prospects.

Bitcoin could grow to $ 100k by the end of the year

The technical situation for Bitcoin may be tricky right now, but Tom Lee of FundStrat remains bullish, he told CNBC’s TechCheck Tuesday.

“We have to keep in mind that bitcoin makes most of its profits in 10 days in one year, so the idea that it is now below $ 30,000 does not rule out the possibility of really big payouts by the end of the year. and will potentially reach $ 100,000 or more, ”said the strategist.

The buyer’s interests coincide with $ 20,000.

Nick Mancini, an analyst with cryptocurrency sentiment analysis firm Trade The Chain, said at least part of the fall in bitcoin prices is due to Chinese miners selling their bitcoin holdings to offset the closing cost.

“The market is currently flooded with offers as Chinese miners have sold their cryptocurrencies to cover the costs of closing operations,” he explained. “This has a negative impact on all prices, with altcoins being hardest hit,” the analyst added.

Mancini said that savvy investors “might want to watch bitcoin for an increase in orderbook interest in the $ 20,000 range,” suggesting it could drop to that level.

Fed Will Continue Fueling Bitcoin’s Fall

Richard Farr, head of market strategy at financial consulting firm Merion Capital Group, recalled the key role the Fed can play in anticipating Bitcoin’s further decline.

“We don’t think the crypto sell-off is over. Not when the Fed may have to raise rates a few times next year and new rules are on the way. ”

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