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.

Coinbase.
Coinbase.

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.

Now check out some of the coolest cryptocurrency rigs on Instagram: 

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