Analysts claim that Bitcoin's rebound at $36K means it's time to begin thinking about a bottom

Even as worries about the Federal Reserve’s new policy requirement continue to weigh on equities and cryptocurrency markets, savvy traders are looking for optimal long Bitcoin positions.

On January 24, the Bears remain in firm command of the cryptocurrency market, surprising many. During early trading hours on January 24, bears crushed the price of Bitcoin (BTC) to a multi-month low of $32,967, shocking many. This downward movement filled a CME futures gap created by July 2021.

The $35,000 level was hit early in the trading session on Monday, resulting in a sell-off that dropped below $33,000 before dip buyers arrived to bid the price back above $35,500, according to data from Cointelegraph Markets Pro and TradingView.

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what several analysts have to say about the global financial markets’ macro elements and what to watch for in the months ahead.

For several weeks, the main debate in financial markets in America has been the prospect of four interest rate hikes by the Federal Reserve throughout 2022, which many people believe will put an end to the current bull market. However, according to financial analyst and anonymous Twitter user Tascha, this is a widespread misconception because “rate hikes don’t kill risk assets

Tascha said, “Reversal of quantitative easing does. Check what happened to stocks 2015 and 2018 when Fed turned off the tap.”

RK Maruvada, a pseudonymous Twitter user, responded to Tascha’s post with the following remark. RK Maruvada n: nA long-time fan of #Bitcoin Maximalists

Is it time to think about a bottom?

Technical analyst and Bollinger Bands creator John Bollinger provided a glimmer of hope for the crypto faithful when he tweeted, “It’s time to start thinking about a bottom in cryptocurrencies.”

While the recognized analyst believes that the market may have bottomed, caution is advised and a bounce followed by a retest is required before considering any long BTC positions.

Kevin Kelly, a macro strategist and Delphi Digital co-founder, added that “the main concern now is where the next wave of demand will come from and when it will reach this price.”

BTC/USD 1-day chart. Source: TradingView

“The mid-to-high $30,000s for BTC is a secure bet,” according to Kelly. “Even if it takes a year or longer to realize such gains, large capital allocators would salivate at the prospect of taking advantage of this run up to $70,000,” says Kelly.

Kelly said, “That is why we firmly believe BTC looks attractive here for those with a long enough time horizon, especially when compared to traditional alternatives to park your capital.”

Will Clemente, a cryptocurrency analyst and Twitter user, echoed this viewpoint in the following tweet.

The overall cryptocurrency market cap has risen to $1.594 trillion, up $64 billion from a day earlier, and Bitcoin’s dominance rate is 41.9 percent.

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