Bitcoin price outlook as Bernstein shows bearish strength in crypto stocks this quarter

Bitcoin’s price has fallen more than 30% from its annual high, largely affected by geopolitical and economic concerns that have dampened investors’ appetite for risky assets.

After rallying nearly 12% to a year high of $97,538 in Jan. 15, the bellwether crypto is down nearly 31% to $67,525 at the time of writing. This happened amid several political and economic concerns that have increased significantly due to the drama of US President Donald Trump extended earlier this year, followed by the start of the war in the Middle East against Iran that led to the effects of the energy and financial markets around the world.

The hawkish stance the Federal Reserve has maintained as a result has also not helped the situation.

According to Bernstein analysts, the resulting volatility has left shares tied to crypto markets, including exchanges, brokerages, and tokenization platforms like Coinbase, Robinhood, and Figure, down nearly 60% from their recent highs. This means a huge discount considering that these businesses have continued to expand their operations despite the chaos.

In their Monday note to clients, they predicted that the current market weakness will extend until the release of the first quarter earnings reports, at which time the market’s decline is likely to intensify. Such a prediction suggests that Bitcoin is likely to continue to see a low at least until the end of April.

On the daily chart, the price of Bitcoin (BTC) has lost the support of the main descending line where the bulls used to find a foothold.

Technical indicators such as MACD and RSI show that bears are still profitable in the current setup. The MACD lines made a bearish crossover and moved lower while the RSI line moved within a descending channel, both signs that selling pressure remains strong.

Meanwhile, $65,000 could serve as an important psychological support that the bulls would want to protect. If Bitcoin falls sharply below this key level, the bears would aim to drag it down to the annual low around $60,000 again.

On the contrary, if the price of BTC recovers above $69,000, which corresponds to the Fibonacci retracement level of 23.6%, it can indicate a change in momentum.

Bullish outlook on crypto-linked stocks despite decline

Although the latest report predicts a price target for the crypto-linked stock, Bernstein’s analysts maintained “outperform” ratings for Coinbase, Robinhood, and Figure as they attributed the recent weakness to high stress and deteriorating market sentiment rather than a fundamental business failure.

This means that following an expected weak quarter, they expect these companies to come out strong in the long term, possibly as Bitcoin returns to its previous highs once all the drama from the ongoing US-Iran war settles down.