The prominent equity research firm Wolfe Research finds the current levels at which Bitcoin trades as a favorable entry point.
Analysts at Wolfe said in a Thursdaynoteto investors that now is the best time to buy the crypto dip.
Specifically, Rob Ginsberg and Read Harvey view the current market conditions as enabling for a Bitcoin rebound, citing historical context and technical indicators.
For context, Bitcoin steadies above $92,000, up 2.17% over the past seven days.
Its market cap is around $1.85 trillion, accounting for 58.7% of the total crypto market valuation.
Market Sentiment Division:
A Bitcoin Win
Wolfe highlighted that the crypto market sentiment is at an “all-time divide,” with bulls and bears split on the next market trajectory.
Analysts see this as a potential buying opportunity, tippingBitcointo rally under such circumstances.
However, the research firm noted it is somewhere in between.
While it maintains its earlier stance that Bitcoin would bottom around $75,000, it admitted that Bitcoin is at a favorable entry point for investors looking to benefit from the next leg up.
On why it believes that Bitcoin could still reach $75,000, Wolfe cited weak ETF flows and predominant downward momentum.
Specifically, US spot Bitcoin ETFs recorded a $14.9 million outflow on Wednesday, and even its recent positive days trail the heavy inflows seen earlier in the year.
The firm also noted that most altcoins are down 20-50% in the past three months, another sign of weak market momentum.
However, it sees this as a good time to buy the dip , as the crypto market could rebound soon.
Positive Signs Suggest Imminent Recovery
The analysts identified that the crypto market has returned to a long-standing area of support that has historically marked a positive momentum shift.
Bitcoin has shown a strong correlation with the equity market over the past two years, bringing it a form of predictability.
With the equity market finding support, the firm believes crypto is in a similar position to that which marked a turning point in the past.
Citing this, the firm stated, “So, crypto bulls, the floor is yours.”
Interestingly, technical indicators also support a rebound.
The daily moving average convergence divergence (MACD) has shown strength, indicating abullish move is imminent.
However, Wolfe noted such signs could also be short-lived.
Notably, the firm views the recent Bitcoin trend above $90,000 as constructive and could be the start of a legitimate uptrend.
To confirm its potency, however, Bitcoin must reclaim key price levels.
The analysis highlighted the psychological $100,000 price mark and the 50-day MA at $101,000 as the areas where the upward momentum would face real tests.
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