Analysts say Bitcoin’s bounce off $36,000 means “time to start thinking about a bottom”

Analysts say Bitcoin’s bounce off ,000 means “time to start thinking about a bottom”

The bears remain in full control of the cryptocurrency market on Jan 24 and, to the surprise of many, managed to push the price of Bitcoin (BTC) to a multi-month low of $32,967. during the first trading hours. This move lower filled a CME futures gap left over from July 2021.

Data from Cointelegraph Markets Pro and TradingView shows that the $36,000 level was breached in early trading hours on Monday., triggering a sell-off that fell below $33,000 before buyers arrived to bid the price above $35,500.

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what various analysts are saying about the macro factors at play in global financial markets and what to watch for in the coming months.

“Interest rate hikes don’t kill off risky assets”

For several weeks, the dominant conversation in US financial markets has been the prospect of as many as four interest rate hikes by the Federal Reserve over the course of 2022, which many have claimed will end the current bull market.

But according to financial analyst and pseudonymous Twitter user Tascha, this is a common misconception because “rate hikes don’t kill off risky assets.”

Tasha He said,

“The reversal of quantitative easing does. Check out what happened to stocks in 2015 and 2018 when the Fed turned off the tap.”

More information about Tascha’s tweet was provided in the following response from pseudonymous Twitter user RK Maruvada.

Analysts say Bitcoin's bounce off $36,000 means "time to start thinking about a bottom"

Is it time to think about a background?

Provided a bit of hope for crypto enthusiasts, technical analyst and creator of Bollinger Bands John Bollinger posted the following tweet suggesting that “it’s time to start thinking about a bottom in crypto.”

While the well-known analyst thinks the market may be in the general bottom area, caution is still warranted and a rebound followed by a retest is needed before looking to enter a long BTC position.

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Opening a long Bitcoin position “looks attractive here”

A final analysis was provided by the macro strategist and co-founder of Delphi Digital, Kevin Kelly, who indicated that “the big question now is where the next wave of demand will come from and what level we must reach so that it triggers such offers”.

Analysts say Bitcoin's bounce off $36,000 means "time to start thinking about a bottom"
BTC/USD 1-day chart. Source: TradingView

According to Kelly, “mid-to-high $30,000 for BTC is a safe bet,” especially given the widespread belief by many that Bitcoin could see a “run to $70,000.”

This would mark a 75% gain from current levels, which “large capital allocators would salivate at the opportunity to capture” from Kelly’s perspective, “even if it takes a year or more to realize such gains.”

Kelly said,

“This is why we strongly believe that BTC looks attractive here for those with a long enough time horizon, especially when compared to traditional alternatives to park your capital.”

This sentiment that BTC is at a good level for a long time was also echoed in the following tweet from cryptocurrency analyst and Twitter user Will Clemente.

The global cryptocurrency market capitalization now stands at $1.594 trillion and the dominance rate for Bitcoin is 41.9%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.