Bitcoin may bottom by spring: Bloomberg

According to data provided by Fundstrat technical analyst led by Tom Lee, it is likely that bitcoin may soon bottom out. There are high chances that this will happen in a few months.

Mark Newton of Fundstrat Global Advisors told Bloomberg that there is a "high chance" that bitcoin will hit a low by spring. At the same time, he warns against bullish expectations now, as it is not yet the time for a medium-term rally. The current rebound may mislead the bulls.

The analyst notes that a drop below the $35,500 level will push Bitcoin to test the $32,950 zone, the low BTC hit on January 24.

However, according to Newton, if Bitcoin rises above $40,000, it will be critical for crypto bulls. He believes that until this level is taken, the main cryptocurrency is likely to remain in a downward pattern.

Over the past few weeks, the price of bitcoin has been declining mainly due to the strong correlation with traditional assets. Risk aversion and hawkish rhetoric from the Fed have been the catalyst for the fall in high-yielding assets.

Noelle Acheson, head of market insights at Genesis Global Trading Inc., is currently also not optimistic about the price of Bitcoin in the short term. According to him, crypto derivatives market indicators are neutral but still show a negative trend. He states that the cryptocurrency market is now in a wait-and-see mode.

Tyler Winklevoss, one of the "crypto twins" and founder of the Gemini exchange, tweeted that Bitcoin is "is not a faster horse but a flying car."

Another major supporter of the main cryptocurrency, President Nayib Bukele of El Salvador, tweeted this week that he expects Bitcoin's skyrocketing price to be only a matter of time. The reason for this, he says, is that there are 50 million millionaires in the world, and one day each of them will want to own at least one bitcoin. Since there are only 21 million BTC in existence, this demand will drive the price sky-high.

Evaluating the forecast from Bloomberg and earlier technical reviews, we see that the consolidation range of 35,915.72 - 37,903.51 is now the key for the further direction of BTCUSD. Going down from it, in my opinion, can send the main cryptocurrency to $29,000 per coin. Although the reversal may occur earlier. As Bloomberg notes, it is close to $32,950 for one bitcoin.