Under the dovish tone of the Federal Reserve in the United States this Wednesday, Bitcoin briefly rebounded above $68,000. However, with market sentiment fluctuating, most of the gains have been retraced. Is now a good time to buy the dip?
(Background:
M6 Research Report: How does the Bitcoin halving affect the market, and what opportunities are there in the BTC ecosystem?
)
(Additional background:
Bitcoin ETF experiences net outflows for four consecutive days: BTC falls below $65,000, while Ethereum loses $3,500. Has the selling pressure ended?
)
Table of Contents:
Profit-taking likely to continue
Bernstein raises year-end price target for Bitcoin to $90,000
Buying opportunity on dips
In the past 24 hours, the cryptocurrency market has seen more declines than gains. Bitcoin has retraced its gains from Wednesday’s rally driven by the dovish tone of the Federal Reserve in the United States, and the trading price is hovering below $65,000.
Some altcoins have outperformed Bitcoin. Ripple’s XRP, decentralized data storage platform Filecoin’s FIL, and Internet Computer’s ICP tokens have risen by 6%-7% in the past 24 hours, while Solana (SOL), Avalanche (AVAX), and Aptos (APT) have declined by 2%-5% during the same period.
Profit-taking likely to continue
According to a report by Morgan Stanley analyst Nikolaos Panigirtzoglou, two indicators, the futures position proxy of Morgan Stanley and the premium of Bitcoin futures relative to spot, suggest that Bitcoin is still overbought.
The analysts stated that these indicators suggest that positions have only been slightly reduced so far. They said:
Last week, Morgan Stanley analysts predicted that the price of Bitcoin could fall to around $42,000 after the halving, citing reduced miner rewards and rising production costs.
So far, the significant outflows recorded by Grayscale GBTC seem to be intensifying bearish sentiment. GBTC has seen more selling than other newly launched Bitcoin ETF issuers have seen buying. Since converting to a physically-backed Bitcoin ETF on January 11, GBTC’s Bitcoin holdings have declined by over 40%. From earlier this week to now, the net outflows from major ETF issuers have approached $749 million.
However, Bloomberg’s Chief ETF Analyst, Eric Balchunas, denied the impact of Grayscale outflows on Bitcoin prices, pointing out that there is no direct correlation between ETF flows and BTC price performance.
Further reading:
Morgan Stanley: Bitcoin could fall to $42,000 after halving, current BTC still overbought, downtrend not over yet
Bernstein raises year-end price target for Bitcoin to $90,000
According to a research report by Bernstein, the company has raised its Bitcoin price target for the year-end from the previous $80,000 to $90,000. Based on the rise of Bitcoin and the positive response to the new physically-backed Bitcoin ETF, the company has also increased its outlook for cryptocurrency mining stocks.
Bernstein has raised the target stock price for CleanSpark from $14.20 to $30 and maintained an outperform rating; lowered the target stock price for Riot Platforms from $22.50 to $22 and given the stock an outperform rating against the market; raised the target price for Marathon Digital (MARA) from $14.30 to $23.
Analysts Gautam Chhugani and Mahika from Bernstein stated:
Buying opportunity on dips
In their report this week, Bernstein analysts said that Bitcoin has recently pulled back from its all-time high of over $73,000 to below $63,000, representing a temporary “buying opportunity on dips” before the halving. They stated:
Some analysts believe that Bitcoin may reset the “sustainability of the bull market” through a deeper decline. Jelle, an anonymous cryptocurrency trader on the X platform, stated in his analysis that unless BTC holds the $65,300 level, the pullback will not end, and the price may continue to consolidate within the current range for a period of time and will need to reclaim the $69,000 price level (the market cycle peak of 2021) to reignite a rally to higher prices.
Related Reports
Get Bitcoin for buying drinks at convenience stores! Estimated monthly transaction volume for purchasing virtual currencies amounts to tens of millions of dollars
BTC falls too sharply? Hong Kong Yuhing Technology sells Bitcoin and Ethereum at a low point, cashing out 14.4 million ringgit
VanEck predicts: If Trump is elected President of the United States, he will support the Bitcoin and cryptocurrency industry!