There’s no question that the crypto market has ushered in devastating lows compared to what we saw back in December 2017 and early 2018. The majority of cryptos are already 80-90% – or in some cases, even more – down from their all-time highs.
This bear market has been going on for such a long time that you’d think this has to be the extent of it… surely we’re right around the corner from prices seeing a trend reversal and establishing higher lows.
However, this may not be the case just yet. According to an email quoted by Bloomberg on February 6, analysts from the investment and analysis firm Fundstrat Global Advisors warned their clients that cryptocurrency markets could soon experience new lows. This grueling bear market isn’t over yet, it would seem.
Fundstrat Analysts Predict Lower Lows
Analysts at Fundstrat notified customers via email that Bitcoin (BTC) and altcoin prices may soon dip lower, based on current market performance. At the time of writing, Bitcoin is in the red for the past week and is currently trading around $3,400. As for altcoins, many of them have seen even bigger drops, with only a few doing well.
According to Fundstrat analyst Robert Sluymer, the crypto market structure is currently weak, and may fall to new lows very soon:
“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows.”
Backing up this statement is Fundstrat’s advance/decline indicator, which is a technique used to gauge the direction for 250 small-cap cryptocurrencies. As seen in the image below, the overall market is at risk of breaking to new lows.
Moreover, Sluymer says the key level to watch for Bitcoin is $3,100. Adding to this, he said:
“A break below the fourth-quarter lows at $3,100 would imply a decline to $2,270, while a move above $4,200 is needed to signal Bitcoin is beginning to improve.”
Fundstrat Normally Known For Bitcoin Bullishness
In the past, the prominent investment and analysis firm have generally been bullish on the outlook of Bitcoin and cryptocurrencies as a whole. For instance, Tom Lee, the firm’s co-founder, has made numerous bullish predictions for Bitcoin that have all been proven wrong thus far.
Back in January 2018, Lee said that Bitcoin would reach new highs above $19,000 in 5 months. Later, when Bitcoin was hovering around the $6,000 range for months, he believed Bitcoin would reach $25,000 by the end of 2018, which was – obviously – also a misguided prediction.
Lee has also predicted that Bitcoin could surge to $125,000 by 2022. Although this 2022 prediction has not yet been proven wrong,it seems unlikely as of late.
Do you agree with the Fundstrat analysts? Will Bitcoin and altcoins reach new lows in the near future? Let us know what you think in the comment section below.