Analysts at BTIG cautioned that bears should be wary of Bitcoin (BTC), predicting that Bitcoin could rebound strongly towards the $100,000 level after the sharp decline it experienced this month.
“After a 36% drop between peak and trough, we believe Bitcoin is poised for a reflexive rally toward at least $100,000,” BTIG analyst Jonathan Krinsky said in a note to clients.
Bitcoin is trading at $90,451, up almost 10% over the past five days, according to data from Coin Metrics. However, due to a combination of macroeconomic developments and crypto-specific pressures, it is still down 20% over the past month.
Growing concerns about overvaluation in AI stocks are causing some investors to reduce their risk appetite and turn to safe-haven assets such as gold. Furthermore, various signals from recent US federal economic indicators have heightened market caution.
Some long-term Bitcoin investors have turned to profit-taking due to the widespread belief that BTC prices are tracking in line with the blockchain’s quadrennial program update (halving). Despite this selling pressure, BTIG believes Bitcoin will be able to recoup some of its losses by the end of the year.
BTIG analysts also claimed that crypto mining companies Cipher Mining and Terawulf have delivered “impressive performance” even during the recent economic downturn. Cipher Mining is up 35% since the beginning of the week, and Terawulf is up 31% over the same period. Analysts noted that the index of crypto miners has also formed strong support and could rise another 15% before hitting tighter 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.
*This is not investment advice.
