According to Canaccord Genuity, Bitcoin price has been stuck for about a month but its chart shows that it could be near the start of a new cycle.
On Wednesday, Bitcoin is hovering just below the $30,000 level it took back four weeks ago.
Both BTC and Ethereum were flat on a weekly basis, down 1% on a monthly basis, and are up nearly 7% since the June 21 rally following BlackRock's BTC ETF application.
In a note, Canaccord technical analyst Javed Mirza said that multiple closing prices for both cryptocurrencies indicate that the short- and medium-term price trends are higher, supporting further bullishness.
Bitcoin is stuck at $30,000 but Canaccord Genuity predicts a 28% increase in the medium term. Mirza said that if Bitcoin continues to close above $26,249 for a few more weeks, it could rise 28.3% from current levels to target $38,202.
He argued that investors should wait for the first resistance level on the upside at around $30,493 and the next resistance level at $31,476.
According to the analyst, if Bitcoin price falls, the first support will be at $28,717, which is the level of its 50-day moving average. The next level could be around $27,441, a level it hasn't seen in a month.
For ETH, the analyst is predicting another 55.6% rise from current levels and is targeting $2,952 if it can sustain the multi-week close of $1,935.
Looking at the long term, Bitcoin and Ethereum recently retraced their four-year moving averages of around $27,022 and $1,592, respectively.
“This confirms that the long-term trend is now up, a strong technical positive and consistent with the dominance of a four-year cycle in cryptocurrencies,” Mirza wrote.
*Not investment advice.
