Bitcoin price bottoming out Fundstrat: Breaking through $40,000 is key

A technical analyst at Fundstrat said there is a good chance that Bitcoin will bottom in the coming months.

Bitcoin, which is down about 50% after hitting an all-time high last November, has stabilized recently. And according to pricing models tracked by Fundstat’s Mark Newton, Bitcoin’s bottom is “very likely” to come in the spring.

However, Newton cautioned against being bullish on Bitcoin right now. "The small rebound in the past two weeks may not be enough to make people expect a new mid-term rebound to have begun," he said.

Among the key technical levels to watch, Bitcoin’s break above $40,000 will be very important for the bulls, he added. If Bitcoin falls below $35,511, it will test $32,950 further, around the intraday low of Jan. 24.

Bitcoin has also tumbled in recent weeks as risk assets tumbled across the globe as concerns over a hawkish Federal Reserve stance intensified. At the same time, cryptocurrencies such as bitcoin and ethereum have become more correlated with assets such as stocks as more traditional investors get involved.

As of press time, Bitcoin fell 4.64% to $36,750.0 per piece.

Lastly, Newton also noted that he remains cautious even though Bitcoin is expected to bottom soon.

“Before the daily close above $40,000, bitcoin prices are still in a downtrend, and from a technical perspective, it’s hard to rule out further weakness,” he said.