Global advisory firm Fundstrat says that there is a good chance that the low of Bitcoin would come in the spring months.
The firm’s analyst, Mark Newton, notes that buyers would dominate the market if the price broke above $40k, and anything below $35,511 would push it down to $32,950.
Newton cautions about going long too soon, saying that the minor two-week bounce might not mean that a premature price rally has started.
He maintains that until the $40k level is surpassed on a daily close, the token remains under a downward sloping pattern that could open more downward momentum.
Bitcoin has plunged in the past few weeks in an industry-wide rout that was triggered by Federal Reserve tapering and expected interest rate hikes.
Cryptocurrencies like Bitcoin and Ether have become more correlated to stocks amid increasing institutional adoptions.
BTC was trading at $37k on Thursday at 7.36 a.m London time. The asset has stabilized after dropping about 50% from its ATH.