Bitcoin’s sluggishness is an opportunity for investors, says Canaccord Genuity

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Bitcoin price has been stuck for about a month, but its chart shows it could be close to the start of a new cycle, making it a good time for long-term investors to add to their positions, according to Canaccord Genuity. On Wednesday, Bitcoin was hovering just below the $30,000 level it rebounded from four weeks ago. Still, he struggled to top that mark earlier in the year and continues to do so now. Both bitcoin and ether are flat for the week, down 1% for the month and up around 7% since the June 21 rally following BlackRock’s Bitcoin ETF app. Multiple closing prices for the two crypto assets show their near-to-mid-term price trends higher and more supportive of the upside, Canaccord technical analyst Javed Mirza said in a note on Tuesday. He told investors to “use pending near-term weakness to add exposure near significant technical support to their 50-day moving averages.” BTC.CM= 1Y mountain Bitcoin was stuck at $30,000, but Canaccord Genuity sees a 28% upside in the medium term. Investors should expect a first level of resistance at around $30,493 on the upside and the next at $31,476, he said. If the price of bitcoin were to drop, the first support would be at $28,717 around the level of its 50-day moving average. The next lower level would be around $27,441, a level he hasn’t seen in a month. For Ether, it sees another 55.6% upside from current levels, targeting $2,952, if it can sustain a multi-week close of $1,935. Looking long-term, bitcoin and ether also recently recovered to their four-year moving averages of around $27,022 and $1,592, respectively. “This confirms that the long-term trend is now up, a strong technical positive, and is consistent with a four-year cycle taking hold in cryptocurrencies,” Mirza wrote. Bitcoin has historically followed a four-year cycle related to its halving events when the reward forming bitcoin is halved, as intended in the Bitcoin Code, to reduce the supply of the cryptocurrency. Lately, investors have been drawing similarities between the cryptocurrency’s recent behavior and its movements ahead of the latest halving. CNBC’s Michael Bloom contributed reporting.

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