Jurrien Timmer, director of global macro at Fidelity Investments, has weighed in on the Bitcoin price action, arguing that $70,000 is the main level to watch.
"Perhaps this correction will set up for the next launch, but for now, all eyes are on support at the $70k," Timmer said.
According to Timmer, Bitcoin has now returned to "a more grounded" valuation level following the recent price drop.
His valuation model is based on the internet S-curve and the power curve of wallet growth.
The cryptocurrency is currently changing hands at $83,016 after adding 0.3% over the past 24 hours.
Earlier, Bloomberg's Mike McGlone predicted that the price of the leading cryptocurrency could plunge to the $70,000 level, underperforming gold.
Bitcoin has so far plunged by more than 10% on a year-on-date basis, substantially underperforming the yellow metal.
Meanwhile, Bitcoin ETFs have suffered seven consecutive days of outflows, with institutions seemingly souring on the top cryptocurrency.
However, whales appear to be on an accumulation spree. Over the past 30 days, the largest market players have managed accumulate roughly 65,000 BTC, according to CryptoQuant data.
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