Top analysts are split on the way forward for the crypto market.
In a recent interview with CNBC, Fundstrat’s Tom Lee remained confident that the crypto market could see a relief rally.
Lee, who also doubles as the chairman of the world’s largest Ethereum treasury firm BitMine Immersion, said everything was in place for the crypto market to bottom.
Source: X/Tom Lee
According to him, the decline in crypto was expected following the announcement and confirmation of the Fed’s new chair.
But he added that the extent of the crypto market sell-off was “more than expected,” noting that it had no ‘leverage’ right after the October 10 de-leveraging event.
Galaxy foresee’s extra dip for BTC
BTC dropped 11% last week, falling from $90K to $75K. It bounced back slightly to $78K at the time of writing.
For Galaxy’s head of research, Alex Thorn, however, the crypto asset could post more losses due to ‘lack of near-term catalysts.’
In a recent note to clients, Thorn wrote,
Source: Galaxy Research
Currently, the 200-week Moving Average (MA) sits around $50K, and Thorn added that this level has been a key buying area in the past.
Interestingly, some whales with over 1000 BTC were already jumping on discounted prices to add positions, Bitfinex noted.
Source: Glassnode/Bitfinex
Will $70K hold?
On his part, Aurelie Barthere, principal research analyst at Nansen, a crypto analytics platform, also shared a bearish outlook similar to Thorn’s. He cited potential changes if Kevin Warsh is confirmed as the new Fed chair.
In an email statement, Barthere told AMBCrypto,
Meanwhile, the 2021 cycle also rhymed with the current price action, with fractals (blue line) suggesting that BTC could slip to $70K. This was the peak of the past cycle, and past bear markets tend to stabilize around previous market cycle tops.
Source: BTC’s 2021 vs 2025 pattern, TradingView
Final Thoughts
- Fundstrat’s Lee said the crypto market bottom formation could be likely as ‘all conditions’ were aligned.
- Still, macro headwinds and the close resemblance between the 2021 pattern and current price action called for extra caution.
Source: https://ambcrypto.com/crypto-is-bottoming-now-why-fundstrats-tom-lee-expects-a-rebound/
