BTIG analysts warned that bears should be careful with Bitcoin (BTC), predicting that the cryptocurrency could make a strong rally back towards the $100,000 level after the sharp pullback it experienced this month.
“Following the 36% drop between the peak and the trough, we think Bitcoin is poised for a reflex rally towards at least $100,000,” BTIG analyst Jonathan Krinsky wrote in a note to clients.
Bitcoin is trading at $90,451, up almost 10% in the last five days, according to Coin Metrics data. However, it’s still down 20% in the past month due to a combination of macroeconomic developments and crypto-specific pressures.
Some investors are reducing their risk appetite and turning to safe havens like gold due to growing concerns about the overvaluation of AI stocks. Furthermore, mixed signals from recent US federal economic data are fueling market caution.
Some long-term Bitcoin investors are turning to profit-taking due to the widespread belief that the BTC price is moving in line with the blockchain’s quadrennial programmatic updates (halving cycle). Despite this selling pressure, BTIG believes Bitcoin will recoup some of its losses by the end of the year.
BTIG analysts also argued that crypto mining companies Cipher Mining and Terawulf have delivered “impressive performance” even during the recent downturn. Cipher Mining is up 35% since the beginning of the week, while Terawulf is up 31% during the same period. Analysts noted that an index of crypto miners is also forming strong support, with potential for an additional 15% upside before reaching tougher resistance.
Ethereum, the second-largest crypto asset by market capitalization, is also poised to recover towards the $3,400 level despite losing 24% of its value last month.
