A Fundstrat Global Advisors analyst has indicated that it would take “weeks, if not months” to mend the “technical damage” caused by the recent collapse of Bitcoin (BTC).
This is according to a report by Bloomberg.
In a note that was forwarded to clients, Fundstrat’s Rob Sluymer projected that Bitcoin’s collapse has thrust crypto markets into a “deeply oversold” area, while “longer-term technical indicators aren’t so favorable.”
Sluymer settled that Bitcoin would be able to support a “multi-month rally,” but only after the “significant” damage done this week has been fixed.
“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 dropped below the $5,600 price point for the first time since October 2017, shattering recent support around $6,000 and reaching multi-month records of volatility.
A trader at eWarrant Japan Securities K.K. in Tokyo, Soichiro Tsutsumi, was quoted as saying that the loss of $6,000 support looks like a “dangerous sign” for industry players, especially those with “business models reliant on a client pool.”
The recent crypto market crash has also caused a dip in the shares of crypto-connected firms, including that of Japanese SBI Holdings and Monex Group. Both Monex Group, the owner of crypto exchange Coincheck, and SBI Holdings went through a nosedive of more than 2 percent to close at two-week lows in Tokyo.
Fundstrat’s experts has subsequently relayed that the year-end market trend is “stressed, but not broken,” according to a tweet of CNBC journalist Carl Quintanilla.
Quintanilla said that Fundstrat claimed that they expect the “sectors hit the hardest to lead into YE,” which will result in growth of stocks.
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