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There is no doubt that the cryptography market has resulted in catastrophic lows compared to what we saw in December 2017 and early 2018. The majority of cryptos are already 80-90% – or in some cases even more – down from their history. highs.
This bear market has been around for so long that you will not think it should be commensurate with its magnitude … we are surely about to see prices see a reversal of trend and set higher lows.
However, this may not be the case for the moment. According to an email quoted by Bloomberg On February 6, badysts at Fundstrat Global Advisors, the investment and badytics firm, warned their clients that cryptocurrency markets may soon see new lows. This bearish bear market is not over yet, it seems.
Fundstrat badysts predict lower lows
Fundstrat badysts informed customers by e-mail that Bitcoin (BTC) and prices of altcoins may soon drop, depending on current market performance. At the time of writing this article, Bitcoin has been in the red for a week and is currently trading around $ 3,400. As for the altcoins, many of them have experienced even greater declines, some only succeeding well.
According to Fundstrat badyst Robert Sluymer, the crypto market structure is currently weak and may soon fall to a new low:
"The price structure for most crypto-currencies remains weak and seems vulnerable to an imminent downgrade of lows."
The Fundstrat advance / decline indicator is corroborated by this statement, a technique used to gauge the direction of 250 small-cap crypto-currencies. As the picture below shows, the market as a whole is likely to reach new lows.
In addition, Sluymer says the key level to watch for Bitcoin is $ 3,100. Adding to that, he says:
"A break below the lows of the fourth quarter at $ 3,100 would imply a drop to $ 2,270, while a $ 4,200 overshoot is needed to signal that Bitcoin is starting to improve."
Fundstrat normally known for its dynamism in Bitcoin
In the past, large investment and badytics companies were generally optimistic about Bitcoin prospects and cryptocurrencies as a whole. For example, Tom Lee, the co-founder of the company, has made many bullish predictions for Bitcoin, all of which have proven to be fake up to now.
In January 2018, Lee said that bitcoin would reach new heights above $ 19,000 in five months. Later, while Bitcoin was floating around $ 6,000 for months, he thought Bitcoin would reach $ 25,000 by the end of 2018, which was – obviously – also a misleading prediction.
Lee also predicted that bitcoin could reach $ 125,000 by 2022. Although this 2022 forecast is not yet belied, it seems unlikely.
Do you agree with Fundstrat badysts? Will Bitcoin and altcoins reach new lows in the near future? Tell us what you think in the comment section below.
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