There’s another crypto ‘washout’ coming before investors should buy, Fundstrat says

A final big sell-off in bitcoin is on the immediate horizon before dip-buyers should come in, according to Fundstrat Global Advisors. “While a bigger low to the decline from last November seems near, most short-term technicals point to an above-average chance of a final ‘washout’ style decline before this bottoms,” Mark Newton, global head of technical strategy at Fundstrat, said in a note to clients. “Bottom line, look to buy dips within 2-3 weeks at lower levels and any move down to test or briefly undercut June lows presents an opportunity,” Newton said. Bitcoin fell below $20,000 briefly again on Wednesday as the cryptocurrency continued to be under pressure as risk assets suffered overall. The world’s largest digital currency has been trading within a tight range in the last two weeks unable to make a major move much above $22,000. Bitcoin has plunged nearly 70% since the peak of the crypto craze in November 2021. The strategist said the digital token could see a bottom in the range of $12,500 to $13,000, which marks a decline north of 35% from here. “Technically not much lies under $17,592 before $12,500-$13,000 which I expect should be an excellent place for intermediate-term buyers to add to longs,” Newton said. “The wave structure from late May would suggest one final low under June lows might be necessary before thinking a bottom is officially in place, which would mark a completed a final five-wave decline.” Notable investor Jeffery Gundlach said recently that parts of the crypto world are blowing up and he wouldn’t be surprised if bitcoin drops to $10,000.

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