Jurrien Timmer, a macro strategist at finance giant Fidelity, said after the leading crypto asset fell below a significant price level. Bitcoin (BTC) Refreshed its look.
Making a statement on Twitter, the macro strategist said he was surprised that Bitcoin dropped steadily below $40,000 from its all-time high of $69,000 in November.
“It’s been a bad trip for the crypto world. GS [Glassnode] The bitcoin-sensitive basket of stocks has already hit its bottom in 2021, which isn’t a great sign. Based on my demand model and on-chain dynamics (via the sleep flow indicator), I thought $40,000 would be the bottom, but here we are at $35,000.”
Then Timmer, referring to past trends in which weak hands surrendered to strong hands, bitcoinHe sees the potential to reverse course and rise once again.
“Bitcoin often crosses ups and downs, so maybe that’s all that’s going on here. Here is the ‘asset-adjusted sleepiness flow’ that measures the transition from weak hands to strong hands. It’s in the range that has stopped every previous drop.”
Regarding Bitcoin supply and demand, the analyst noted: “The lower Bitcoin goes, the lower it will be fundamentally.”
Timmer also highlights that the Bitcoin-gold ratio has “returned to the support zone and is 1.51 standard deviations from the trendline.”
The strategist shared his latest chart as an indication that “short-term momentum is now showing an uptrend.”
Timmer concluded his analysis by saying that although Bitcoin has had a rough journey that has seen speculative stocks crumble as well, BTC’s strong fundamentals remain intact.
“Bitcoin is currently caught in a liquidity storm that is sweeping the more speculative side of the stock market. But unlike for-profit (tech) stocks, Bitcoin has a foundation that will likely become more attractive over time.
A tide of liquidity is turning right now, fundamentals will be more important than ever in 2022.”
At the time of writing, Bitcoin is trading sideways at $36,899. Starting the year with $47,292 bitcoin price since then it has dropped about 22%.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.