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January 17, 2022

Fidelity Macro Strategist Says Bitcoin Has Drawn a Major Line in the Sand at $40,000 – Here’s What It Means

Jurrien Timmer, a macro strategist at monetary large Fidelity, says that Bitcoin (BTC) might have discovered a new degree of assist that’s 33% greater than beforehand believed.

In a thread to his 80,000 Twitter followers, Timmer says that a little-known metric referred to as “dormancy flow” could be the key to pegging Bitcoin’s backside at $40,000.

“A number of days in the past I made the case that 40k could possibly be the new 30k for Bitcoin, primarily based on the rising intrinsic worth from my S-curve mannequin.

I simply got here throughout an indicator that additional suggests this: Dormancy stream. It has reached the type of oversold ranges seen at previous bottoms.”

Timmer supplies a chart that tracks information since Bitcoin’s 2011 inception in which the price of BTC ranges inside the demand S-curve.

Source: Jurrien Timmer/Twitter

Concerning analytics agency Glassnode’s time period “dormancy flow” and the way it elements in time elapsed between coin transactions, Timmer says,

“To me, this is further evidence that 40k could be a major line in the sand, much like 30k was last year.”

The tweet thread follows on the heels of a earlier put up the place Timmer says in gentle of Federal Reserve insurance policies and rising inflation, Bitcoin seems to be oversold at $40,000.

“Is $40k the new $30k? The Fed’s hawkish stance on inflation has had broad influence.

With the liquidity-driven momentum performs beneath strain, it’s not a complete shock that crypto has corrected.”

Source: Jurrien Timmer/Twitter

The strategist concludes by saying that he believes Bitcoin stays a store-of-value asset similar to gold.

“I like to match Bitcoin to that different extra conventional store-of-value, gold.

Here we see that the BTC/gold ratio has fallen again to the breakout zone from final yr.

Technically the ratio is reasonably oversold.”

Source: Jurrien Timmer/Twitter

At time of writing, Bitcoin is up a fraction on the day and buying and selling for $43,369.

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Featured Image: Shutterstock/Azer Merz/anna kumantsova

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