(Bloomberg) -- Bitcoin is poised to continue its rally to a range of $10,000-$11,000 based on previous recoveries, according to a technical strategist who's called key turning points in the digital currency.
Rob Sluymer of Fundstrat Global Advisors sees the largest cryptocurrency rising through the second quarter of this year into that price range, which roughly matches a 50%-62% recovery from its tumble between June and December of 2019. The coin regularly breaks its trend, or inflects, after retracing 62% of its prior move, he said.
Bitcoin climbed to within 1.5% of $10,000 on Thursday, its highest intraday level since October.
“Bitcoin appears to be in a textbook re-acceleration,” Sluymer wrote in a note Wednesday. The pullback should be relatively shallow, followed by “resuming its longer-term uptrend into year-end.”
Sluymer predicted a major pullback in Bitcoin at the end of June 2019, as it was hitting its highs for that year. That was after he had said the coin was a buy in early May, as it was starting to rise parabolically.
Bitcoin rose to as high as $9,851, and traded up 1.6% at $9,838 as of 1:22 p.m. in London, according to prices compiled by Bloomberg. That brought its gain this year to 37%.
The digital asset gyrated last year between a low of $3,339 and a high of $13,852, reached in June.
Fundstrat was an early mover in analyzing cryptocurrencies. Sluymer's colleague Tom Lee is regarded as a Bitcoin bull. Lee doesn't make price predictions on the digital coin.
To contact the reporter on this story: Joanna Ossinger in Singapore at jossinger@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Todd White, Sid Verma
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