Venture capitalist Chris Burniske, who correctly called the 2022 crypto bottom, says Bitcoin (BTC) is flashing strength after reclaiming a critical technical indicator.
Burniske, a former ARK Invest analyst and a current partner at venture capital firm Placeholder, tells his 256,400 Twitter followers that Bitcoin is now trading above the 200-week simple moving average (SMA), an indicator that signals long-term trends.
According to the investor, retesting the 200-week SMA as support bodes well for the future price action of the king crypto.
“Even if we consolidate for a bit, BTC convincingly cleared and closed back above the 200W SMA (yellow) – having that as support again would be beautiful.”
Burniske says that the 200-week SMA has historically served as a reliable support for BTC during deep bear markets. However, the investor notes that the pattern was broken during the most recent crypto winter.
“For those that are new here, the 200-week SMA was always support for BTC in cycles past – this bear was an anomaly in that regard.”
As for his outlook on how BTC might perform in the short term, Burniske says that he could see Bitcoin reaching the $50,000 level only after it takes out resistance at $35,000.
“Could see us making a run for even higher (serious calls for $50,000 come after $30,000-$35,000 is slain); too early to de-risk, in my opinion, but not too early to have a plan.”
Burniske also forecasts that Bitcoin’s market cap will likely soar to trillions of dollars along with other altcoins, which he groups under the term the Internet Financial System (IFS).
“I’ve been a Bitcoin believer for over 10 years, but I also recognize it is only part of the Internet Financial System (IFS), and despite likely growing to store trillions in value, it won’t even be the majority of the IFS.”
At time of writing, Bitcoin is trading for $27,962, a fractional increase on the day.
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