BTC is Coming Back: Will we See 100K After the 10% Recovery in 5 Days?

The bears in Bitcoin need to be careful: the world’s oldest cryptocurrency will likely stage a rally back toward $100,000 after the major drop earlier this month, according to BTIG.

“After a -36% peak-to-trough decline, we believe Bitcoin is ready to continue its reflexive rally at least back toward the levels around 100 thousand,” BTIG analyst Jonathan Krinsky said in a note to clients on Wednesday.

According to Coin Metrics, the digital asset was last trading at $92,451.30, which is nearly a 10% increase over the past five days.

Despite this, bitcoin is still down 20% over the past month, due to a combination of macroeconomic and crypto-specific factors.

Why is it under pressure?

Some investors are pulling out of higher-risk assets and redirecting funds toward “gold” and other safe-haven assets, as concerns persist around the valuations of companies involved in artificial intelligence — a sector that often shares the same investor base as the crypto market.

Traders are also carefully weighing the mixed economic data from recently published federal reports.

Separately, long-term bitcoin holders are selling part of their positions, driven by the widespread belief that Bitcoin’s price follows a four-year cycle connected to programmable blockchain updates that gradually make the token more scarce.

Recovery potential

Despite the recent drop, bitcoin is still on track to regain some of its losses by year-end.

Mining companies Cipher Mining and Terawulf are also “showing impressive strength during the crypto downturn,” BTIG analysts say.

• Cipher Mining is up 35% since Monday.
• Terawulf is trading 31% higher over the same period, despite recent corrections.

In addition, the crypto miners index “has held support and likely has around 15% more upside potential before it meets more serious resistance,” the analysts note.

Ether, Solana and XRP are also recovering

The second-largest cryptocurrency by market capitalization, Ether, also appears ready to reclaim the $3,400 level after losing 24% of its value over the past month.

Ether was last trading at $3,075.62, nearly a 13% rise over the past five days, according to Coin Metrics.
Solana and XRP have increased by 12% and 15%, respectively, over the same period.