Analysts at Morgan Stanley have, in a research note titled “State of the Bear Market,” downplayed bitcoin’s 50% correction from its all-time high seen in November as the figures show the drop was within historical norms.
According to CoinDesk, the bank’s head of cryptocurrency research Sheena Shah pointed out that estimating the fair value of cryptocurrencies is difficult because they trade speculatively and were supported by the large availability of U.S. dollars and central bank liquidity.
In the note, the analysts wrote that if the price of bitcoin drops below the $28,000 mark, the market may expect further weakness. On the upside, the $45,000 mark is the price to watch because it would suggest the current downtrend has turned around.
Notably, a chart from cryptocurrency data provider CryptoCompare has shown that BTC’s past downtrends have reversed after getting to its fifth Fibonacci retracement level, which should now be around $28,970.