Canaccord Genuity suggests that despite the month-long stagnation in the price of bitcoin, its chart indicates the possibility of entering a new cycle. This presents a favorable opportunity for long-term investors to increase their positions. Currently, bitcoin is hovering just below the $30,000 level, which it reclaimed four weeks ago. However, it has struggled to surpass this mark since earlier this year.

Both bitcoin and ether have remained relatively unchanged for the week, with a 1% decline over the month and an approximately 7% increase since the rally on June 21 following BlackRock’s bitcoin exchange-traded fund application. According to Canaccord’s technical analyst Javed Mirza, multiple closing prices for both cryptocurrencies indicate higher short- and intermediate-term price trends, supporting the potential for further upside.

Mirza advises investors to take advantage of any near-term weakness by adding exposure when the cryptocurrencies reach their 50-day moving averages, which serve as important technical support. He also highlights that bitcoin has the potential to increase by 28.3% from current levels, targeting $38,202 if it continues to close above $26,249 for several weeks. On the upside, the first level of resistance for bitcoin would be around $30,493, followed by $31,476.

In the event that the bitcoin price declines, the first level of support would be at $28,717, approximately the level of its 50-day moving average. The subsequent level would be around $27,441, a price it hasn’t seen in a month. Mirza also predicts a 55.6% upside for ether from its current levels, targeting $2,952 if it can maintain a multiweek close of $1,935.

Furthermore, Mirza observes that bitcoin and ether have recently regained their four-year moving averages of approximately $27,022 and $1,592, respectively. This confirmation of an upward long-term trend is a positive technical indicator and aligns with the four-year cycle often observed in cryptocurrencies, tied to halving events. Halving events occur when the reward for mining bitcoin is halved according to the Bitcoin code, reducing the cryptocurrency’s supply. Some investors have drawn comparisons between recent cryptocurrency behavior and past movements leading up to halving events.

(Source: WS News Publishers)