Analyst firm: It might take several months for bitcoin to recover

Analyst firm: It might take several months for bitcoin to recover.

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Tim Haldorsson

tim.haldorsson@trijo.co

The market cap for all cryptocurrencies has fallen sharply in the past week. According to the analyst firm Fundstrat the markets are currently in a deeply oversold area, which could trigger a short-term rise.

During the week we have seen a sharp fall in prices for bitcoin and other cryptocurrencies. The total market cap for all cryptocurrencies has been traded as high as $214 billion at the peak of the week, and the lowest was about $175 billion. This means a fall of $39 billion or 20 percent.

Long-term indicators are still not favorable

Now Rob Sluymer, chief analyst at the analyst firm Fundstrat, writes that the price fall in the week has pushed the crypto markets into a deeply oversold area. This could trigger a short-term rise, while the long-term technical indicators are still not as favorable.

“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”, Rob Sluymer writes in a letter to Fundstrats clients, Bloomberg reports.

Earlier this summer, Tom Lee, Head of Strategy and Market Research at Fundstrat, stated that he thought one bitcoin would cost $25,000 and the price for ethereum would reach $1,900 at the end of 2018.

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