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A staunch bitcoin bear says this recent surge might have legs

A staunch bitcoin bear says this recent surge might have legs

Bitcoin is showing signs of life after fluctuating between plunging, sliding and going nowhere fast for months on end.

After breaking above $7,000 per coin on Tuesday to its highest level since early June, foreign exchange strategist and longtime bitcoin bear Boris Schlossberg of BK Asset Management said this week’s move could point to further gains. Here’s what he told CNBC’s “Trading Nation” on Wednesday about the flagship cryptocurrency.

• After consolidating for months around the $6,000 level, bitcoin had a burst of activity over the past few days, rising by nearly 16 percent since Monday alone; much of that gain came from a sudden 11 percent rally on Tuesday as it appeared several technical levels were broken.

• As bitcoin appears to rally mostly on technical drivers, for the moment, it could easily squeeze above $8,000. That level is where much more serious resistance lies on the charts.

• At the same time, bitcoin moved higher as it was reported that asset management firm BlackRock was looking into blockchain technology and cryptocurrencies. Larry Fink, BlackRock’s CEO, confirmed the report. Another catalyst that appeared to move the coin in recent days was a report that hedge fund manager Steve Cohen was exploring digital currencies.

• If blockchain technology becomes increasingly entrenched in the mainstream financial industry, and shows a clear business-use case, bitcoin could be seen as a legitimate store of value going forward.

Bottom line: Bitcoin’s most recent rally shows the flagship cryptocurrency’s price could have legs, according to a longtime bitcoin bear.