- November was eventful for Bitcoin, and the combination of positive fundamentals triggered a strong buying spree, pushing it to a high of $38,400 on the 24th of this month.
- The $40,000 price level projected by Wolfe Research is not overly ambitious for Bitcoin to achieve.
- Another prevalent feature in the market is the sustained attractiveness of Bitcoin to its most steadfast institutional buyers, with MicroStrategy leading the list.
According to views shared by the Market Analytics platform Wolfe Research, Bitcoin is in a ready position for an upward movement.
Is the $40,000 Target for Bitcoin Difficult?
The current retracement of Bitcoin (BTC) might be a preparation for a bullish move, according to views shared by Wolfe Research, a renowned Market Analytics platform. According to Wolfe Research’s thesis, the ongoing bear correction presents a good buying opportunity.
November was eventful for Bitcoin (BTC), and the combination of positive fundamentals triggered a strong buying spree, pushing it to a high of $38,400 on the 24th of this month. In a rapid effort to finish the bear in a positive manner, overcoming bear pressure, attempts to keep the price above the psychologically significant $40,000 were hindered. The declines offer a buying opportunity that could provide a good reward for those willing to take risks.
The $40,000 price level projected by Wolfe Research is not overly ambitious for Bitcoin to achieve. The last time the BTC price touched this level was on May 12, 2022, and as conditions improve with regulations and adoption, the chances of a revival are high.
Another prevalent feature in the market is the sustained attractiveness of Bitcoin to its most steadfast institutional buyers, with MicroStrategy leading the list, continuing to increase its BTC holdings. Wolfe Research’s projections are a reasonable estimate, but recently, other analysts have shared more bullish predictions.
Bitcoin ETF and Halving
Two significant trends that could influence Bitcoin’s price in the market are potential approval sentiments for a spot Exchange Traded Fund (ETF) product tracking Bitcoin from the U.S. Securities and Exchange Commission (SEC).
In an environment where companies like BlackRock, Fidelity Investments, VanEck, and Bitwise are competing for approval of their products, Bloomberg Analysts have maintained a 90% probability of approval for a cryptocurrency. When approved, it will attract institutional capital and help propel Bitcoin’s price to new highs.
Sentiments around the upcoming Bitcoin halving are another factor that could shape how the market embraces BTC in the coming months. The scheduled reward reduction in April will solidify Bitcoin’s status as a deflationary cryptocurrency and potentially increase future price growth by reducing the reward from 6.25 BTC to 3.125 BTC.
