The price of Bitcoin may be heading down to $3200, new research has warned — as the first and foremost cryptocurrency fails to find support at its April lows of $6450.
The Bigger Picture
In a detailed transaction analysis released June 13, Fundstrat Global Advisors concluded that — due to the lack of support — BTC/USD could hit February’s $6900 low before rebounding and subsequently falling further to somewhere between $5000 and $5500.
The findings begin:
This week, with almost all [cryptocurrencies] breeching important support at the prior week’s lows (BTC 7355, 7058) many are now stress testing/breaking next important support levels notably BTC at the April lows at 6450.
Long term, prices could then fall much further towards the bottom end of Bitcoin’s multi-year upward trend channel, which began in 2016. This would mean a descent to around $3200 — a more than 80 percent correction versus all-time highs, but still signaling a continuation of a general uptrend.
Such behavior would mimic Bitcoin in 2014, Fundstrat says — echoing similar conclusions made last week from cryptocurrency trading analyst Tone Vays.
“What would a bear market like 2014 imply for BTC? For reference, a similar correction would imply a decline to the lower end of its trend channel coinciding with BTC’s 2016-2017 uptrend near $3200,” analysts commented.
$25k Still In Play For Lee
Since publishing the warning, Bitcoin has already hit further lows of $6217, before rebounding. At the time of this writing, prices are hovering around $6500.
Fundstrat’s co-founder Tom Lee, who contributed to the latest update, nonetheless remains noticeably bullish on Bitcoin — even in the shorter term.
By year-end, Lee still expects prices to reach $25,000 — $5000 more than December’s all-time highs. He reiterated this stance last month, despite the Consensus conference failing to produce an up-to-70 percent price rally Lee himself had forecast. He explained:
Bitcoin doesn’t have to go up every day to move from $8,000 to $25,000. The ten best days account for all the return of bitcoin in a year. If you didn’t own bitcoin for ten days each year, you lost 25 percent each year.
What do you think about Fundstrat’s Bitcoin price forecast? Let us know in the comments section below!
Images courtesy of Shutterstock, CoinMarketCap.com.
