{"id":393231,"date":"2022-01-13T02:05:00","date_gmt":"2022-01-12T23:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fidelity-exec-says-bitcoin-is-technically-oversold-making-40k-a-pivotal-support\/"},"modified":"2022-01-13T02:05:00","modified_gmt":"2022-01-12T23:05:00","slug":"fidelity-exec-says-bitcoin-is-technically-oversold-making-40k-a-pivotal-support","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fidelity-exec-says-bitcoin-is-technically-oversold-making-40k-a-pivotal-support\/","title":{"rendered":"# Fidelity exec says Bitcoin is \u2018technically oversold,\u2019 making $40K a \u2018pivotal support\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2c5a6579481\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2c5a6579481\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fidelity-exec-says-bitcoin-is-technically-oversold-making-40k-a-pivotal-support\/#A_clear_bounce_in_Bitcoins_Stochastic_RSI\" >A clear bounce in Bitcoin&#8217;s Stochastic RSI<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/fidelity-exec-says-bitcoin-is-technically-oversold-making-40k-a-pivotal-support\/#Price_follows_the_S-curve_model\" >Price follows the S-curve model<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/fidelity-exec-says-bitcoin-is-technically-oversold-making-40k-a-pivotal-support\/#BTCGold_ratio_suggests_Bitcoin_is_oversold\" >BTC\/Gold ratio suggests Bitcoin is oversold<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Fidelity exec says Bitcoin is \u2018technically oversold,\u2019 making $40K a \u2018pivotal support\u2019  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>A painful retracement in the Bitcoin (BTC) market earlier this week sent the price below $40,000 for the first time since September 2021. <\/p>\n<p>Many analysts predicted the decline to continue toward the $30,000 to $35,000 range, but the price reclaimed $40,000 as support again and on Wednesday BTC made an abrupt move above $44,000. This rekindled hopes that the $40,000 level is perhaps where Bitcoin may bottom out before continuing its move higher in 2022.<\/p>\n<p>Jurrien Timmer, the director of global macro at Fidelity Investments, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TimmerFidelity\/status\/1481004884455571465\">called<\/a> $40,000 a &#8220;pivotal support,&#8221; noting that Bitcoin has become &#8220;technically oversold&#8221; near the level, which may amount to a rebound in the short-term.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/5bc375ed-2464-4657-b974-699f2262e183.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>At the core of Timmer&#8217;s bullish outlook were three catalysts: a Stochastic RSI, the so-called S-curve model and a ratio metric of Bitcoin to gold.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"A_clear_bounce_in_Bitcoins_Stochastic_RSI\"><\/span>A clear bounce in Bitcoin&#8217;s Stochastic RSI<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In detail, the Stochastic RSI is a momentum indicator that compares an asset&#8217;s closing price with its high-low range over a specific period. The indicator oscillates between 0 and 100, with the area above 80 signaling &#8220;overbought&#8221; and the area below 20 alerting on &#8220;oversold&#8221; conditions.\u00a0<\/p>\n<p>The indicator assists traders in spotting trend reversals by tracking the relationship between its high-low range (%K) and the moving average of the same high-low range (%D). So, the market returns a buy signal if the\u00a0%K wave crosses the %D wave from below in the oversold territory.<\/p>\n<p>Similarly, it returns a sell signal if the %K line crosses %D line from above in the overbought territory.<\/p>\n<p>As Timmer notes, Bitcoin&#8217;s %K wave has been rising above the %D wave, signaling a buy trend just as the price maintained support above $40,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/b240223f-72c4-431e-b091-525093d2bfae.jpeg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD price chart featuring its recent pivot at support and Stochastic RSI readings. Source: Fidelity<\/em><\/figcaption><\/figure>\n<p>&#8220;Bitcoin has reached a line in the sand at $40,000 and is now technically oversold,&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TimmerFidelity\/status\/1481004884455571465\/photo\/1\">tweeted<\/a> Timmer early Wednesday, adding that &#8220;like $30,000 the $40,000 level seems to be a pivotal support area.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Price_follows_the_S-curve_model\"><\/span>Price follows the S-curve model<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Timmer further identified a so-called demand curve \u2014 as shown via the pin wave in the graph below \u2014 that has been instrumental in predicting the end of Bitcoin&#8217;s bearish cycles since 2012.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/87f511b7-a988-4473-af9b-3cd5faea1f1c.jpeg\"><figcaption style=\"text-align: center;\"><em>Bitcoin supply and demand models. Source: Fidelity<\/em><\/figcaption><\/figure>\n<p>Between April and June 2021, the curve followed BTC price action in bouncing back from $30,000,\u00a0and now, it has been acting as the same support near $40,000 which raising the possibility that the next BTC rebound could reach levels near $100,000.<\/p>\n<p><strong><em>Related: Wall Street still not convinced on Bitcoin $100K this year: JPMorgan survey<\/em><\/strong><\/p>\n<p>&#8220;The $30,000 level in 2021 provided support based on my demand model (S-curve model),&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TimmerFidelity\/status\/1481004891720101888\/photo\/1\">wrote<\/a> Timmer, adding: <\/p>\n<blockquote><p>&#8220;That same level looks to have moved up to $40,000, providing fundamental support once again. It&#8217;s a moving target that <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly provides a fundamental anchor for price.&#8221;<\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"BTCGold_ratio_suggests_Bitcoin_is_oversold\"><\/span>BTC\/Gold ratio suggests Bitcoin is oversold<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bitcoin also <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears oversold, albeit &#8220;moderately,&#8221; regarding its price-performance against gold. As Timmer noted, the so-called BTC\/Gold ratio has slipped to support at 22 after topping out twice at 37.4 in 2021.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/831785f6-6b11-4137-b8cd-c39a580d28c3.jpeg\"><figcaption style=\"text-align: center;\"><em>Bitcoin vs. Gold. Source: FMRCo, Bloomberg, Fidelity<\/em><\/figcaption><\/figure>\n<p>Meanwhile, the plunge pushed the ratio&#8217;s Bollinger Bands into oversold territory, a classic buy signal that indicates that capital could start moving from gold to Bitcoin markets.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">All in all, these charts tell me that Bitcoin should have both technical and fundamental support at $40k.  It doesn\u2019t mean it  can\u2019t go lower, but it looks like $40k is the new $30k.  \/END<\/p>\n<p>\u2014 Jurrien Timmer (@TimmerFidelity) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TimmerFidelity\/status\/1481004898418315264?ref_src=twsrc%5Etfw\">January 11, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The prediction came in line with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/assets.bbhub.io\/professional\/sites\/10\/1545100_CryptoOutlook_Jan2022.pdf\">Bloomberg Intelligence&#8217;s recent crypto outlook<\/a>. Penned by their senior commodity strategist, Mike McGlone, the report identified the capital rotation out of gold and into the Bitcoin market. McGlone also noted that the trend would continue especially against a near four-decade high in inflation which is the result of the U.S. Federal Reserve&#8217;s loose monetary policies.<\/p>\n<p>&#8220;We see gold more likely to advance towards $2,000 an ounce by 2022, but Bitcoin to increase at a greater velocity,&#8221; McGlone wrote.\u00a0<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Many analysts predicted the decline to continue toward the $30,000 to $35,000 range, but the price reclaimed $40,000&#8230;<\/p>\n","protected":false},"author":1,"featured_media":393232,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvYTYyOGZhODAtZGUwMy00MmMwLTgzZGQtMmIyYzIzMTEwZTMzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74982,74863,74939,75150,75164,78261,71835,73785],"class_list":["post-393231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-market-analysis","tag-market-update","tag-price-analysis","tag-tech-analysis","tag-gold","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/393231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=393231"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/393231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/393232"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=393231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=393231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=393231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}