Bitcoin rose on Wednesday as mainstream investors continued to favor it against their long-term inflationary outlook for the US.

The benchmark cryptocurrency climbed by up to 2.99 percent to an intraday high of $19,340 (data from Coinbase). Its move upside appeared after a day of intense selling activity that saw the price crashing from its record high of $19,915 to as low as $18,109.

Nevertheless, bulls purchased the dip based on Bitcoin’s long-term bullish narrative set forth by institutional investors.

The past few weeks saw a flurry of corporations, including asset management firms and investment advisories, praising Bitcoin for its potential to rival gold as a hedging asset. For instance, Blackrock CEO Larry Fink noted during his conversation with Bank of England Governor Mark Carney Tuesday that Bitcoin can become a global asset given its recent upside momentum on Wall Street.

“You see these big giant moves every day…it’s a thin market. Can it evolve into a global market? Possibly,” he said.

Comments like these serve as one of the many catalysts behind Bitcoin’s recent assertiveness against bearish assaults. That has further improved the cryptocurrency’s medium-term technical outlook.

Bitcoin’s Rising Wedge

Bitcoin is now forming — or hinting to form a Rising Wedge. It is an alarmingly bearish reversal pattern that first anticipates the asset to rise but later prompts it to head lower by extensive points. With that said, Bitcoin has every opportunity to trade upwards and form one record high after another. But a long-term bull trend cannot happen without a healthy downside correction.

Bitcoin is ascending inside the Rising Wedge. Source: BTCUSD on TradingView.com

Technically, BTC/USD can reach $20,500 in the near-term, where the two Wedge trendlines converge. After that, the pair would likely correct lower, with a downside target sitting as low as the maximum Wedge height. That is around $3,200 for now.

Therefore, the next Bitcoin bear target is around $17,000.