Bitcoin is likely on the path back to $100,000

Bitcoin has moved back above $90,000. Why this strategist says a return to $100,000 is not far away
 

 

Bitcoin could be ready to emerge from a tough period of seasonal selling, says BTIG strategist Jonathan Krinsky. 

Bitcoin is likely on the path back to $100,000, as it enters a seasonally bullish period. 

That's according to BTIG's chief technical strategist, Jonathan Krinksy, who said the cryptocurrency is looking oversold and shared the following chart as bitcoin was pushing above $91,000 on Friday. 

According to Krinsky's chart, bitcoin is just about to come out of a traditionally weak period, based on a 2015 to 2024 historical pattern. "The average seasonal pattern for BTC bottoms Nov. 26thand has a strong tailwind into year-end," he said 

While U.S. markets took a Thanksgiving Day break, cryptocurrencies never take a holiday, and bitcoin has been creeping higher since the close of Wall Street trading on Wednesday. 

The price of bitcoin (BTCUSD) went from around $87,000 on Wednesday to over $91,000 by Thursday and was trading at $91,615 on Friday. Alongside stocks that saw a strong bounce into the Thanksgiving Day break, bitcoin has climbed over 8% this week. 

The No. 1 cryptocurrency is still 27% below its Oct. 6 record high of $126,272, coming under pressure in recent weeks alongside a bigger drop for stocks and reduced appetite for perceived riskier assets. 

According to Deutsche Bank, uncertainty over Fed interest rate cuts has also been a factor for weakness, as well as outflows from big institutional traders and long-term holders of the bitcoin who have been cashing in on a big run. 

Where bitcoin goes has become a focal point for many stock investors as the cryptocurrency's moves seem increasingly correlated to U.S. growth stocks.