To say that cryptos past two weeks have been tumultuous would, frankly, be putting it rather lightly. On November 13th, Bitcoin (BTC) was trading at $6,200, but since that fateful day, the eye of Bitcoin Cashs network upgrade (a purported bearish catalyst), BTC has freefallen to a year-to-date low of $3,450.
While the asset has since undergone a somewhat convincing recovery, moving from $3,450 to $4,200… twice, some fear that the worse has yet to come for cryptos de-facto king and figurehead — Bitcoin. But then again, other analysts have claimed that there are some silver linings in the cryptocurrency cloud, at least in the short-term anyway.
Analyst Calls For Short-Term BTC Bottom
Speaking with MarketWatchs Aaron Hankin, the financial media outlets in-house crypto reporter, Nick Cawley of Daily FX noted that while crypto bulls can breathe a sigh of relief, Bitcoins bears may not be ready to let the carnage end all too easily.
Cawley, a markets analyst at Daily FX, a Chicago-based forex corporation, noted that after BTCs most recent bout of capitulation, which sent the asset into a 40% drawdown, a short-term bottom is in its infancy. He noted that the lack of news to drive the move indicates that bitcoin is likely to find some support at $3,500-$3,700, even if sell-side volume continues to fester.
This call for support at $3,500 echoes sentiment held by Mati Greenspan, eToros in-house crypto expert, who recently noted that while $4,000 put up close-to-zero resistance, there is a semblance of buying pressure festering at $3,500 and $3,000.
And, also taking momentum technical indicators, such as RSI, into account, Cawley added that crypto assets are currently well-oversold, adding that a short-term bounce could be in order. Still, drawing attention to Bitcoins long-term prospects, the Daily FX representative exclaimed that a test of $2,970 is slated to occur in due time.
$3,000/BTC Remains The Communitys Flavor Of The Month
As BTC fell under $4,000 last week, falling to an over one-year low, market analysts, prominent investors, and crypto soothsayers sought to weigh in on the jaw-dropping decline, which sent retail investors scurrying.
While some critics have expressed their sentiment that forecasters are shilling their snake oil calls, Cawleys aforementioned $2,970 call lines up with the predictions made by his peers. As reported by Ethereum World News on Monday, Anthony Pompliano, the founder of Morgan Creek Digital, took to CNBCs Squawk Box segment to tout his personal outlook on the cryptocurrency markets.