.svg)
Latest Business News
The Price of Bitcoin Could be Near the Start of a New Cycle, Says Canaccord Genuity
Bitcoin's Stagnation and Potential for Growth
The price of bitcoin has remained stagnant for the past month, hovering just below the $30,000 level. However, this price chart may indicate that bitcoin is nearing the start of a new cycle, making it an opportune time for long-term investors to add to their positions. Canaccord Genuity's technical analyst, Javed Mirza, suggests that if bitcoin continues to close above $26,249 over several weeks, it could potentially run 28.3% higher from current levels, targeting $38,202. This analysis is supported by the short- and intermediate-term price trends of both bitcoin and ether, which show a positive momentum.
Resistance and Support Levels for Bitcoin
Mirza points out that investors should be aware of the various resistance and support levels for bitcoin. If the price continues to rise, the first level of resistance would be around $30,493, followed by $31,476. On the other hand, if the price starts to decline, the first level of support would be at $28,717, which coincides with its 50-day moving average. The next level down would be at approximately $27,441.
Growth Potential for Ether
Mirza also suggests that ether has the potential to increase by 55.6% from current levels, targeting $2,952, if it can maintain a multiweek close of $1,935. In addition, both bitcoin and ether have recently reclaimed their four-year moving averages, indicating a positive long-term trend. This aligns with the cyclical nature of bitcoin's historical behavior, as it has typically followed a four-year cycle tied to its halving events.
Hot Take: Potential Impact on a New Business
The recent analysis by Canaccord Genuity suggesting that the price of bitcoin and ether may be near the start of a new cycle could have an impact on new businesses looking to enter the cryptocurrency space. Here's a hot take on how this development may play out:
1. Increased Investor Interest: If bitcoin and ether experience significant growth as predicted, it is likely to attract more investors to the cryptocurrency market. As a result, new businesses operating in the crypto sector may find it easier to secure funding and attract capital for their ventures.
2. Expanded User Base: A positive trend in the price of cryptocurrencies often leads to increased adoption and usage. This could be advantageous for new businesses offering cryptocurrency-related services or products, as there may be a larger pool of potential customers eager to explore the market.
3. Regulatory Attention: As the popularity of cryptocurrencies grows, regulators may intensify their focus on the industry. New businesses entering the space will need to be proactive in navigating regulatory requirements, ensuring compliance, and staying up-to-date with evolving regulations to maintain credibility and avoid potential roadblocks.
4. Competitive Landscape: With the potential for increased investor interest and user adoption, the cryptocurrency market could become more competitive. New businesses will need to carefully differentiate themselves through unique value propositions, innovative solutions, and strong market positioning to stand out in a crowded field.
In conclusion, the potential growth of bitcoin and ether in the medium and long term could present exciting opportunities for new businesses in the cryptocurrency industry. However, these businesses must be prepared to navigate regulatory challenges, differentiate themselves in a competitive market, and adapt to the evolving needs and preferences of investors and users.
Article First Published at: https://www.cnbc.com/2023/07/19/bitcoins-sluggishness-is-an-opportunity-for-investors-says-canaccord-genuity-.html
