Bitcoin’s price has been stagnant for about a month, but its chart suggests it may be nearing the start of a new period, making it a good time for long-term investors to add to their positions, according to Canaccord Genuity. Bitcoin was hovering just below the $30,000 level it regained four weeks ago on Wednesday. Still, he struggled to break that mark earlier in the year and still does. Bitcoin and Ether are both flat for the week, down 1% for the month and up nearly 7% since a June 21 rally following BlackRock’s Bitcoin exchange-traded fund filing. Multiple closes for both cryptoassets indicate that their short- and medium-term price trends are high and support further upside, Cancord technical analyst Javed Mirza said in a note on Tuesday. He told investors to “use pending near-term weakness to add exposure near key technical support at their 50-day moving average.” BTC.CM = 1Y Mountain Bitcoin Stuck at $30,000 But Canaccord Genuity Sees Up 28% in Medium Term Mirza said Bitcoin could run another 28.3% higher from current levels, targeting $38,202, if it continues to close above $26,249 in several weeks. Investors should expect the first resistance level above around $30,493 and the next level at $31,476, he said. If Bitcoin’s price drops, the first support will be $28,717, which is about the level of its 50-day moving average. The next level below would be around $27,441, a level it has not seen in a month. For Ether, he sees another 55.6% upside from current levels, with a target of $2,952, if it can hold the multiweek close of $1,935. Looking longer-term, Bitcoin and Ether also recently reclaimed their four-year highs of $27,022 and $1,592, respectively. “This confirms that the long-term trend is now up, a strong technical positive, and consistent with the four-year cycle in cryptocurrencies,” Mirza wrote. Bitcoin has historically followed a four-year cycle associated with its halving events – when the reward for mining Bitcoin is halved to reduce the supply of the cryptocurrency, as designed in the Bitcoin code. Recently, investors have been drawing parallels between the cryptocurrency’s recent behavior and its moves over the last half. — CNBC’s Michael Bloom contributed reporting.
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Source by [CNBC News]
