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Jurrien Timmer, director of global macroeconomics, claims the first cryptocurrency is technically oversold
The director of global macroeconomics at Fidelity Investments, Jurrien Timmer, believes that bitcoin has reached the bottom of a correction at the level of $ 40 thousand. According to him, after falling to this mark, the cryptocurrency is technically in an oversold phase. The trimmer is referring to the rising demand model curve, according to which the $ 40K level provides fundamental support for Bitcoin. According to this model, a similar level of support in the summer of 2021 was the $ 30,000 mark, Timmer recalled.
In the summer of last year, the rate of the first cryptocurrency fell to $ 28 thousand. This was due to a record drop in the hash rate in the bitcoin network, provoked by a complete ban on mining in China. Cryptocurrency mining companies began to leave the country en masse and turn off equipment. At the beginning of December last year, the bitcoin hash rate fully recovered.
At the end of July 2021, the bitcoin price began to grow and exceeded $ 40 thousand. The asset continued to grow and in early November updated its all-time high above $ 69 thousand. Against this background, the total cryptocurrency market capitalization exceeded $ 3 trillion.
On January 13, Bitcoin is traded at $ 43.7 thousand. During the day, the cryptocurrency has risen in price by 3%, and its capitalization has increased to $ 828 billion, according to CoinGecko. On January 10, the value of the asset fell below $ 40 thousand for the first time since September.
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