Investing.com – Bitcoin’s recent bounce might propel the token back toward the $100,000 mark, as oversold conditions converge with increasingly favorable seasonal patterns, according to BTIG.
Although Bitcoin has retreated 36% from its peak, it is currently situated in oversold territory and is entering a time frame historically associated with a reversal.
“Our view is that Bitcoin is now poised to resume its ascent toward a minimum target of 100k,” stated Jonathan Krinsky of BTIG.
The average seasonal chart suggests that the cryptocurrency typically establishes a bottom around November 26th before gathering upward momentum through the close of the year.
Ethereum, which has seen a 47% drop from its high points, has reached a significant level of technical support. While the current trend remains bearish, analysts see a reasonable move towards $3,400 as plausible.
BTIG also highlighted signs of resilience within mining stocks. The Barclays Crypto Mining Index has successfully held support and could potentially advance another 15% before encountering resistance. Individual firms have also begun to diverge from the broader market decline.
Cipher Mining and Terawulf were specifically pointed out for exhibiting relative strength during the recent crypto pullback.
A BTIG analyst indicated that MicroStrategy holds potential for a mean reversion trade. The stock has fallen 63% from its summer peak and is now at a level BTIG identifies as solid support. The brokerage firm maintains a ‘buy’ rating on the stock with a price target of $630.
This outlook emerges as crypto markets struggle for footing after numerous weeks of selling pressure. BTIG’s perspective leans on technical indicators rather than shifts in demand or regulatory changes, emphasizing that exhausted selling and improving seasonality could fuel a tactical rally, even if long-term trends are still ambiguous.
The firm further noted that the Thanksgiving week often coincides with a momentum reset for digital assets, reinforcing expectations for a tactical upward move into December.
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