Bitcoin (BTC) is down almost 7% in the last week, as the market impact of the recently approved BTC ETF works its way through the system. While many contrarian bets about the price of bitcoin after the ETF approval have been proven right, Fidelity’s Jurrien Timmer doesn’t expect the sell-off to continue much longer.
In a thread on X, Timer, Fidelity’s Director of Global Macro, said current trends in bitcoin’s price are suggestive of a short-term positioning adjustment rather than a long-term trend reversal.
While some have forecasted that bitcoin might drop and find support anywhere between the $32K to $38K mark, Timmer expects consolidation of recent gains.
“The short-term question is whether this a sell-the-news moment. My guess is that it will take a little time to consolidate the recent gains, now that the big moment has arrived,” Timmer posted on X. “There were more than a few participants who ‘equitized’ future spot positions through either the futures market or bitcoin-sensitive equities.”
Per Trimmer, bitcoin’s current price is reasonable and is affected by how much its network is growing and the actual interest rates in the economy and the longer-term prospects look bright.
“”Will this be a new chapter towards Bitcoin’s widespread adoption as a commodity-currency?” Timmer posted. “It seems that way, although it could take some time to get there.”
While the rally has stalled, many asset managers, according to Timer, continue to have a significant net long position in the bitcoin futures market.
Meanwhile, CoinDesk recently reported that for the first time ever, Bitcoin’s 50-week simple moving average has crossed above its 200-week average.
This event is known as a “golden cross,” which suggests a long-term bullish market, although its predictive accuracy is debated among traders.
