According to CoinDesk, Bitcoin (BTC) has experienced a nearly 7% drop in the past week, likely due to the market impact of the recently approved BTC ETF. However, Fidelity's Director of Global Macro, Jurrien Timmer, believes the sell-off will not continue for much longer. He suggests that current trends in Bitcoin's price indicate a short-term positioning adjustment rather than a long-term trend reversal. While some analysts predict that Bitcoin may find support between the $32K to $38K range, Timmer expects consolidation of recent gains.
Timmer believes that Bitcoin's current price is reasonable and is influenced by the growth of its network, actual interest rates in the economy, and the cryptocurrency's long-term prospects. He also suggests that the recent ETF approval could be a new chapter towards Bitcoin's widespread adoption as a commodity-currency, although it may take some time to get there. Despite the recent rally stalling, Timmer notes that many asset managers continue to maintain a significant net long position in the Bitcoin futures market. CoinDesk also reported that, for the first time ever, Bitcoin's 50-week simple moving average has crossed above its 200-week average, an event known as a "golden cross," which suggests a long-term bullish market, though its predictive accuracy is debated among traders.
