The bitcoin rate can be directed to around $3,200, analysts of Fundstrat Global Advisors warn in a report published on June 13. Lack of reliable support at the level of $ 6,900 suggests that the next stoppage of the price of cryptocurrency can make between $5,000 and $ 5,500, they write.
“This week almost all of the CROs fell below important support. For bitcoin, these levels were about $7,355 and $7,058. Now many of them test/break the following important support levels, and bitcoin reached the April low by $6,450,” the report says.
In the long term, bitcoin can continue to decline and rush to the bottom of its ascending channel, which dates back to 2016. Nevertheless, falling to $3,200 or more than 80% relative to the historical maximum will not mean a violation of the general uptrend.
This bitcoin behavior will resemble the dynamics of 2014, writes Fundstrat, thereby agreeing with the opinion expressed by analyst Ton Weiss last week. “What will the bear market like 2014 mean? Such a correction will reflect the desire for the bottom of this channel, “- analysts comment.
Since the publication of the original warning, bitcoin has dropped to $6,250 before returning to $6,500. Fundstrat analyst Tom Lee, who also contributed to the final report, remains optimistic about the long-term and even not so distant prospects for bitcoins. Until the end of the year, according to Lee, bitcoin will have time to rise to the level of $25,000, thus exceeding its previous maximum by $5,000.
“Bitcoin does not need to go up every day to be around $25,000. The top 10 days include all of bitcoin’s profitability for the year. If we eliminate these 10 days, we will find that bitcoin drops 25% every year,” says Lee.