Bitcoin price trend is a short-term correction, not a long-term reversal: Fidelity | CoinDesk JAPAN

Bitcoin (BTC) has fallen nearly 7% over the past week as the market impact of recently approved exchange-traded funds (ETFs) has affected the entire system. While many contrarian bets on the price of Bitcoin after the ETF approval were proven correct, Fidelity’s Jurrien Timmer doesn’t expect the sell-off to last long.

Timmer, Fidelity’s global macro director, said in a post on .

While some are predicting that Bitcoin may fall and find support somewhere between $32,000 and $38,000, Timmer expects the recent rally to consolidate and strengthen. There is.

“The short-term question is whether this is ‘selling on the news’. My guess is that now that the big moment has arrived, it will take some time to consolidate the recent rally,” Timmer posted on X did. “There may have been a number of participants who ‘equitized’ their future spot positions, either through the futures market or Bitcoin-sensitive stocks.”

Well, the moment finally came last week, which is very exciting to say the least. Will this be a new chapter towards Bitcoin’s widespread adoption as a commodity-currency?

— Jurrien Timmer (@TimmerFidelity) January 16, 2024

Timmer said Bitcoin’s current price is reasonable and is influenced by how much the network is growing, as well as actual interest rates in the economy and the long-term outlook.

“Could this be a new chapter in the adoption of Bitcoin as a commodity currency?” Timmer posted. “It seems so, but it may take some time to get there.”

Despite the stalled rally, Timmer said many asset managers continue to take large net-long positions in the Bitcoin futures market.

(Fidelity)

Meanwhile, CoinDesk recently reported that Bitcoin’s 50-week simple moving average (SMA) has surpassed its 200-week SMA for the first time in history.

This event is known as a “golden cross” and suggests a long-term bull market, but the accuracy of its prediction is debated among traders.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Jonathan Weiss/Shutterstoc
｜Original text: Fidelity’s Jurrien Timmer Says Bitcoin to Consolidate Recent Gains Amid ETF Hangover