- Bitcoin’s latest upswing suggests the cryptocurrency on the verge of a new uptrend, Ari Wald, head of technical analysis at Oppenheimer, said Monday.
- The digital token rallied to its highest level in nearly a year in late Monday trading and held the $11,000 level into Tuesday morning.
- While gold is likely the most popular hedge bet for those expecting inflation to rise, bitcoin “isn’t as extended,” Wald said on CNBC.
- The coin is slowly reversing a years-long downtrend and is displaying “the type of action” a crypto bull would like to see, the analyst added.
- Watch bitcoin trade live here.
Bitcoin’s long-term trendline suggests it has plenty of room to run, Ari Wald, head of technical analysis at Oppenheimer, said Monday.
The world’s most popular cryptocurrency soared to its highest level in nearly a year late Monday evening and stayed above $11,000 per coin into Tuesday morning as investors continued rotations to hedge plays.
Gold, another alternative asset to soar through recent sessions, is a good way to position for the Federal Reserve’s unprecedented monetary easing, Wald said. Yet major cryptocurrencies could serve as a more tactical bet against inflation and low yields, he noted.
“I think it’s worthwhile to highlight bitcoin instead, which isn’t as extended,” Wald said on CNBC’s “Trading Nation,” adding that the token’s volatility makes it “tough” to shrink trading losses and maintain flexibility for long-term strategies.
Read more: ‘Castles built on sand’: Famed economist David Rosenberg says investors are being too reckless as stocks rally — and that a vicious long-term bear market is far from over
Getting in early could benefit bitcoin bulls for years to come, Wald noted. The coin’s price is steadily reversing a downtrend that began after reaching its peak in 2017, and bitcoin’s latest swings point to plenty of upside to come, he added.
“If you are a long-term holder, this is the type of action you’d like to see,” the analyst said.
Bitcoin traded at $10,992.30 per coin as of 4:15 p.m. ET, up 52% year-to-date.
Now read more markets coverage from Markets Insider and Business Insider:
Bernstein downgrades Tesla and says the stock will tank 42% from its ‘mind-boggling’ valuation
Stock investors could be ‘delusional’ if prices continue to rise faster than earnings forecasts, Ed Yardeni says
An expert shares how to get started in real-estate investing and bring in passive income