Bitcoin Poised for $100,000 Return As ‘Reflex Rally’ Gains Momentum, BTIG Says
Bitcoin had reached a record high of nearly $126,000 in the month of October. But since then, it has faced immense pressure.
Following a sharp drawdown not more than a few weeks ago, Bitcoin prices are once again poised to return to $100,000 levels as technical and seasonal trends show strong momentum, according to financial services firm BTIG.
In its latest note, BTIG Chief Technical Strategist Jonathan Krinsky has made a case for Bitcoin's robust recovery in the near future. After facing immense pressure in the month of November, Krinsky believes the world's largest cryptocurrency asset has found a floor and is ready to surge.
Bitcoin had reached a record high of nearly $126,000 in the month of October. But since then, it has faced immense pressure. After Bitcoin stumbled significantly from its October record high of nearly $126,000, Krinsky believes the asset has found a floor and is ready to surge.
Since the October highs, Bitcoin has fallen more than 27% and is currently trading around $90,000 levels. However, after touching $85,000 levels, BTC has made a swift recovery and is up around 2.5% in the last five days.
"After a -36% peak-to-trough decline, we think Bitcoin is now poised to continue its reflex rally at least back towards 100k,” Krinsky wrote in the report, as cited by CNBC International.
Bitcoin facing pressure earlier in the month, was linked to investors rotating capital out of high risk assets, partially motivated by concerns around high valuations in the artificial intelligence space.
However, Krisnky believes the Bitcoin technicals have improved considerably since.
“The average seasonal pattern for BTC bottoms Nov. 26th and has a strong tailwind into year-end,” he wrote in his note.
The bullish sentiment is not just restricted to Bitcoin. The report highlights a resurgence in crypto-linked equities, which have outperformed during the recent bounce.
Bitcoin mining stocks, for example, have shown "impressive" resilience. Shares of Cipher Mining (CIFR) and Terawulf (WULF) rallied more than 30% earlier this week.
