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.
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.