Bull Trap Again! Bitcoin Bottom Not Yet Reached, Falling below $35,511 Will Get The Bulls Back!
Bitcoin started the year 2022 on a sour note and has been struggling ever since. In 2021, the digital currency went on a spectacular price fluctuation roller coaster ride. Since November, the price of Bitcoin (BTC) has been steadily declining on a daily basis.
Bitcoin has already fallen below the $ $40,000 barrier, down by more than 40% from its November high of nearly $ 69,000.
Should BTC fall below this level to start rising again?
If bitcoin falls below this level, according to technical analyst Mark Newton, it will be bullish. He told Bloomberg that a drop below this level will almost certainly result in a test of $32,950.
In addition, lifting the price of the digital asset above $40,000 would be a significant milestone for bulls.
However, in recent times, the market has seen major sell-offs near this price point, indicating that Newton’s forecast threshold for the bulls has yet to be reached.
With so many price drops in such a short amount of time, bitcoin appears to be more likely to fall below $35,511 than to provide bulls with a much-needed push above the $40,000 mark.
The asset would remain on a downward trend if it did not hit this milestone, according to the Fundstrat analyst.
It remains in a downward sloping pattern until $40,000 is exceeded on a daily close, and it’s tough to rule out further weakness technically, the analyst added.
Caution ‘Volatility ahead’
Newton’s cautious approach to the stock market is reflected in this statement. Because it’s impossible to predict what the market will do at this moment, being cautious is the wisest course of action.
The technical expert also discussed the bottom of the bitcoin market, offering opinions that differed from current patterns.
According to Newton, the bitcoin bottom has yet to be reached. Rather, the expert predicts that the bottom will be reached in the next few months.
He indicated that the rebound that occurred after the market meltdown was just temporary. Furthermore, he does not feel it is a sign of an impending intermediate-term rise.
“This minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun,” Newton added.