Major Investment Bank Oppenheimer Bullish on Bitcoin, Highlights Instead of Gold | News – Bitcoin News

U.S. investment bank Oppenheimers analyst says gold is extended and has run up a bit, bringing attention to bitcoin instead. He sees the cryptocurrency reversing its downtrend from the $20K peak, benefiting from the dollars weakness.

Ari Wald, head of technical analysis at Oppenheimer, a major American investment bank and financial services company, highlighted bitcoin this week on CNBCs program Trading Nation entitled Gold vs. Bitcoin.

He explained: Weve been recommending gold as a way to play the expansion of the Feds balance sheet Its actually the high momentum commodity, it ranks highest above all commodities out there in terms of momentum. While pointing out that gold is extended and has run up a bit, the analyst affirmed, We do recommend sticking with it. Nonetheless, he added:

I think its worthwhile to highlight bitcoin instead which isnt as extended Bitcoin is reversing its downtrend dating back to its 2017 peak. If you are a long-term holder, this is the type of action youd like to see.

Bitcoin is currently trading at about $10,970, having risen 17% this week and 54% this year. Its price is still well below its December 2017 peak of nearly $20,000. Wald noted that the cryptocurrencys recent breakout is setting up for more gains ahead and bitcoins long-term trendline suggests it has plenty of room to run. Meanwhile, the price of gold has hit record highs this week, rallying 8% this month and 28% this year.

Both gold and bitcoin are benefiting from the weakness of the U.S. dollar, Wald continued. Michael Binger, president of Gradient Investments, concurred with Wald about the dollar but he favors gold over bitcoin.

Binger opined: Between the two I would really lean on the gold side here. When you think about it, it is really a Goldilocks environment for gold investors right now. I mean, you have a weak U.S. dollar, you have negative real interest rates. All of this is based on the prospect of rising inflation. While agreeing with the Oppenheimer analyst that bitcoin is a momentum play, Binger still believes that it is not a valid currency yet.

What do you think about the Oppenheimer analysts view? Let us know in the comments section below.

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Major Investment Bank Oppenheimer Bullish on Bitcoin, Highlights Instead of Gold | News - Bitcoin News