The world’s first and largest cryptocurrency, Bitcoin is struggling to get out of the bear market’s grip. In fact, Bitcoin is now in its longest ever spiral downwards. However, the prediction by Fundstrat which suggests that Bitcoin will be testing new lows may just push the coin down even further.
The cryptocurrency which, at the time of press, stands valued at $3,414 with a market cap of $59.8 billion, hasn’t posted a significant gain or loss over its previous day’s price. Its present valuation is a far cry from its highs of 2017 when it touched $19,000. However, according to Fundstrat, the cryptocurrency may be testing new lows soon. In fact, a note written by Fundstrat’s Robert Sluymer stated:
“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows.”
Sluymer has further stated in his note that the prices to look out for are $4,200 and $3,100. According to him and Fundstrat’s technical analysts, if the cryptocurrency hits the $4,200 level, it would mark a 25% increase over today’s prevailing prices. On the other hand, Sluymer warns, if the technical fundamentals of Bitcoin remain weak and it breaches the $3,100 mark then, it is likely that the coin will go as down as $2,270 on the back of such a bearish decline.
Fundstrat’s note has bad news for other cryptocurrencies in the market too. Using its advance/decline indicator, Fundstrat has suggested that 250 small-cap coins are at particular risk and are especially vulnerable to market shocks that may push their value well below their present ones.
This isn’t the first time Fundstrat and Bitcoin have made news together, however. Back in January 2018, the firm’s co-founder Tom Lee had bullishly projected BTC to overhaul its $19,000 all-time high by the summer and breach the $125,000 mark by the year 2022. Lee has also been very confident about the growth and mainstream adoption of the cryptocurrency across the world post the launch of Bakkt, with him stating in an interview:
“Bitcoin should be able to easily break higher ground once people realize its fundamental benefits and use cases.”