Market Divided Amidst Bitcoin's Rapid Recovery
Bitcoin (BTC) has experienced a rapid recovery over the past two days, surpassing the $93,000 mark. This swift rebound has prompted predictions of a market bottom, with analysts at Wolfe Research also indicating that the bottom may be approaching.
In a note published on Thursday, Wolfe analysts Rob Ginsberg and Read Harvey observed that market participants are currently divided in their outlook.
They stated that half of the investors are convinced that a bear market has begun, while the other half believe that the bottom has already been reached.
At this juncture, analysts noted that the cryptocurrency market is experiencing a battle between bulls and bears, which could present a potential buying opportunity.
“Wolfe Research positions the market somewhere in the middle but also believes investors may be approaching a suitable entry point,” the analysts commented.
Wolfe Research Maintains Bitcoin Bottom Prediction
Despite Bitcoin's strong and swift recovery above $90,000, Wolfe Research has reiterated its prediction that Bitcoin will bottom out around $75,000. The firm stated, “our view remains unchanged.”
While BTC has climbed back above $90,000, Wolfe cautioned investors to remain vigilant against a potential bearish wave. They cited ongoing weakness in crypto ETF flows and overall declines in digital assets as reasons for this caution.
Key Levels to Watch for Bitcoin
Wolfe recently indicated that while Bitcoin's momentum is improving in the short term, the next significant test will occur at the $101,000 level, which is where the 50-day moving average is located.
According to the company, $101,000 represents the first real test. However, they anticipate that the more meaningful psychological level for investors will likely be $100,000.