Fidelity Timmer: Bitcoin has found a key support area at $40,000

Jurrien Timmer, director of global macro at Fidelity, offered an interesting analysis as the crypto market follows the stock market under downward pressure amid a hawkish Federal Reserve stance, but added that Bitcoin has now found a key support area at $40,000.

Timmer analyzed this based on an S-curve model. He wrote: “The $30k level in 2021 provides support based on my demand model (S-curve model).

The same level appears to have risen to $40,000, again providing fundamental support. It is a moving target that usually provides the base anchor for price. In addition, the Fidelity executive also compared bitcoin to gold.

He noted that the Bitcoin/gold ratio has dropped into the breakout zone from last year. This suggests that Bitcoin is moderately oversold at $40,000. As such, the Fidelity director added that Bitcoin has both technical and fundamental support at $40,000. Even if Bitcoin falls to this level, it could be a quicker rally.