Analysts Say That Bitcoin and Ethereum May Be Bottoming Out (Soon)

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The prices of bitcoin and Ethereum have remained in a tight range throughout the year. Some analysts believe that they may be at bottom or will bottom soon, but caution is advised against being too bullish.

In his most recent report, Bloomberg Intelligence analyst Mike McGlone stated that Bitcoin is more likely to form a floor than a roof. The price could be at USD 30,000 again, more precisely. According to the analyst, this level “has maintained a floor below the market since the initial breaching of resistance at the beginning of 2021.”

He said that traders in specific ranges may be disappointed.

“Short-term holders who are looking to cover or create new long positions may be disappointed by [USD] 30.000 resistance, which appears less durable than November.”

McGlone suggested that this consolidation period could be over and the path of least resistance may be moving higher.

He said that the next important bitcoin threshold could be the long-declared USD 100,000.
Mark Newton, an analyst at investment research company Fundstrat, suggested that BTC could be reaching its bottom in the coming months. He stated that there is a “good chance” that the lowest price for the coin will occur by the spring months. Bloomberg reported.

Newton says that it is still too early to be bullish, but “this minor bounce may still be premature in anticipating a new intermediate-term rally”

He said that bulls should be aware of the price above USD 40,000 and added that a drop below USD 35 511 would result in a test of USD 32 995.

Newton warned that “until [USD] 40,000 is crossed on a daily closing, it remains in an downward sloping trend, and it’s difficult to rule out further weakness technically speaking.”

McGlone says that ETH’s core principles are very similar to bitcoin’s.

“Bullish fundamentals remain intact and technical guidance has been clear. Buyers have benefited around [USD] 2000 while sellers have benefited at [USD] 4000. It is a matter of how long a consolidation period will last within an enduring bull markets.

The analyst stated that ethereum could be on the road to repeating its performance last summer, which would mean that USD 1,700 might be re-visited. According to the analyst, ethereum reached a new high of USD 4,800 in November after the analysts purged the less leveraged long positions. McGlone stated that Ethereum is approaching the lower end its range, which presents greater risks for longs than shorts.

BTC trades at USD 38.028, after having gained 2% over the past week and a day. ETH trades at USD 2,843, having risen 6% in the last 24 hours and 18% in the past 7 days.

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