Ari Wald, head of technical analysis at Oppenheimer, has revealed bitcoin’s long-term trendline suggests it is “reversing its downtrend” and implies it has plenty of room to move up.
Wald’s comments came after the flagship cryptocurrency broke a two-month long range between $8,000 and $10,000 over the weekend, and quickly moved up to the $11,000 mark, its highest level in nearly a year.
The head of technical analysis highlighted BTC’s price performance on CNBC’s “Trading Nation,” after commenting that Oppenheimer recommends gold as a way to “play the expansion of the [Federal Reserve’s] balance sheet.” Per his words, it’s a high momentum commodity above all others right now.
After making his comments on the precious metal, Wald addressed bitcoin “which isn’t as extended.” He said:
Bitcoin is reversing its downtrend dating back to its 2017 peak. If you are a long-term holder, this is the type of action you’d like to see.
While bitcoin is still far from its near $20,000 all-time high seen in December 2017, breaking the five-figure resistance was seen as a major signal for investors, as the cryptocurrency’s price steadily kept on moving up. At press time, bitcoin is trading at $11,120 according to CryptoCompare data.
During CNBC’s program Michael Binger, president of Gradient investors, weighed in on both bitcoin and gold, and pointed out he leans towards the precious metal as this is “ really a Goldilocks environment for gold investors right now.” Binger pointed out that on top of a weakened U.S. dollar there are negative interest rates in various countries throughout the world.
Addressing BTC, Binger said that while it is a momentum play, it is not a “valid currency yet.” Bitcoin, it’s worth noting, is often referred to as “gold 2.0,” as it has various features the precious metal has, but is a digital asset with several advantages.