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Bitcoin is back in the game.

The cryptocurrency's fall to $5,600 last week "cleaned up weak hands," Fundstrat analysts said in a note Wednesday, Nov. 22. "We no longer feel caution is warranted."

Analysts raised their price target for bitcoin to $11,500 from $6,000 by mid-2018, implying about a 40% increase in the cryptocurrency's value over the coming months. Fundstrat said it recommends steady buying of bitcoin at current levels.

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After the dip last week, bitcoin has surged to new records above the $8,200 threshold. Since the start of the year, bitcoin has rocketed higher over 740%. Coins were trading around $8,209.77 Wednesday morning, up 1.41% on the day.

"Underlying wallet activity and transaction value (2 variables we see explaining 94% of bitcoin) rebounded sharply," analysts wrote. They added that accounts on Coinbase, one of the main bitcoin trading platforms, surpassed 14 million.

The one main near-term concern for bitcoin is high concentration, Fundstrat said. "The coming CME launch of futures is good news overall, but actually could further concentrate mining power - miners can potentially sell forward production, reducing mining profit variability, hence, create incentives to further concentrate," analysts wrote.

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