Wall Street Analysts are optimistic that Bitcoin and other cryptocurrencies can reach new heights.
Could this be bullish for cryptocurrency?
According to Barron’s reports, despite bearish predictions of market techniques, Bernstein analysts are optimistic that Bitcoin and other cryptocurrencies can reach new highs. The firm’s analysts noted its excellent track record of rebounding and surviving bottoms with exponential returns after each winter the industry has experienced. Bernstein’s optimism focuses on the promise of long-term growth due to increased adoption among internet users.
While there is a bear situation for crypto such as adverse macro conditions and regulatory threats, developments in blockchain technology may overcome these challenges in the future. Ultimately, investors should focus on long-term consumer adoption if they plan to see significant returns over time. The past year has brought numerous challenges for the cryptocurrency market. Bitcoin closed 2021 significantly low and lost 65% of its value. This drop in price contrasts sharply with a 60% gain recorded in 2021 and an almost fourfold increase observed in 2020. Bear market conditions are reminiscent of 2018, when the flagship cryptocurrency experienced a 74% drop. Weak risk appetite due to the recent crash in the FTX token and the Federal Reserve’s aggressive rate hikes played a role in pushing Bitcoin prices down through the end of the year.
End of bear market signaled
A closely followed crypto strategist says a crucial technical indicator could signal the end of Bitcoin’s (BTC) bear market. Crypto analyst Kevin Svenson shows his 118,900 Twitter followers that Bitcoin’s weekly relative strength index (RSI), which measures the ratio of down moves to up moves, is close to breaking its cross resistance and BTC bulls are starting to gain some momentum. The analyst stated that Bitcoin’s two-year RSI resistance is very close to a possible one-week RSI burst that will end the downtrend.
In a new video update, Svenson explains the importance of a possible RSI breakout. In his words, he highlights that this is probably one of the highlights for Bitcoin in the entire bear market so far. According to the analyst, a weekly RSI breakout could signal a major trend change for BTC. With the weekly RSI creeping up, Svenson says Bitcoin is “positioned for a possible big uptrend.” The crypto analyst predicts that if the RSI clears its long-term resistance, BTC could rally as high as $21,000. cryptocoin.com As we mentioned, BTC is changing hands at $ 16,850. BTC shows the potential for an increase of over 25% if Svenson hits his target.