Bitcoin’s Breakdown Will Take ‘Weeks If Not Months’ to Rebound

[Geey]

lt will take “weeks, if not months” to repair the “technical damage” caused by the recent collapse of Bitcoin (BTC), according to a Fundstrat Global Advisors analyst, Bloomberg reports today, Nov. 15.

In a note to clients yesterday, cited by Bloomberg, Fundstrat’s Rob Sluymer predicted that Bitcoin’s collapse yesterday has pushed crypto markets into a “deeply oversold” area, while “longer-term technical indicators aren’t so favorable.”

Sluymer concluded that Bitcoin will be able to support a “multi-month rally,” but only after the “significant” damage done this week has been overcome:

“This week’s breakdown produced significant technical damage that will likely take weeks, if not months, to repair to create a durable enough price ‘structure’ to support a multi-month rally.”

Yesterday, the largest cryptocurrency Bitcoin dipped below the $5,600 price point for the first time since October 2017, breaking longstanding recent support around $6,000 and hitting multi-month records of volatility.

A trader at eWarrant Japan Securities K.K. in Tokyo, Soichiro Tsutsumi, told Bloomberg today that the loss of $6,000 support looks like a “dangerous sign” for industry players, especially the ones with “business models reliant on a client pool.”

The recent crypto market slump has also reportedly caused a decline in the shares of crypto-connected companies, including Japanese SBI Holdings and Monex Group. Both Monex Group, owner of crypto exchange Coincheck, and SBI Holdings suffered a slump of more than 2 percent to close at two-week lows in Tokyo, Bloomberg reported.


Source : https://cointelegraph.com/news/bitcoins-breakdown-will-take-weeks-if-not-months-to-rebound-says-fundstrat-analyst?utm_source=telegram&utm_medium=social