A Canaccord Genuity analyst, Javed Mirza, believes that now is the right time for long-term investors to build their positions in Bitcoin as the chart suggests it may be about to start a new cycle. He sees potential for a 28% rally to over $38,000, as long as it holds an important technical support of its 50-day moving average.
Recent price trends indicate further upside in Bitcoin. Even after Ripple’s victory over the U.S. Securities & Exchange Commission, BTC remains around the $30,000 level. Mirza is also bullish on Ethereum.
In his research note today, Mirza urged investors to “utilise pending near-term weakness to add exposure near important technical support at its 50-day moving averages”. He further pointed to the four-year moving average that Bitcoin has recently regained, saying that this confirms the long-term trend is now up, a strong technical positive, and is consistent with a four-year cycle taking hold in cryptocurrencies.
The total supply of BTC is scheduled to halve in April or May of 2024, which typically tends to be a tailwind for its price. Additionally, BlackRock and other asset managers have recently filed for a Spot Bitcoin ETF, signaling institutional interest in cryptocurrencies.
