Bitcoin (BTC) Price to Hit $40K After Current Pullback: Wolfe Research
The current pullback in the price of Bitcoin (BTC) might be the set-up for a bullish move according to insights shared by Wolfe Research, a renowned Markets Analytics platform. Per Wolfe Research’s thesis, the bearish correction being experienced presents a good buying opportunity.
Bitcoin (BTC) Price Offers Risk-Reward Scenario
The month of November has been quite eventful for Bitcoin (BTC) seeing the premier cryptocurrency soar as high as $38,400 on November 24 as the confluence of positive fundamentals triggered the bull’s intensive buyback.
With the coin putting its strong foot forward in its frantic pace to end the month on a positive note, bearish pressure has prevented the push to keep the price above the psychologically important level of $40,000. The series of drops presents a buying opportunity that can give a good reward for those who can afford the risks.
The $40,000 immediate price level projected by Wolfe Research is obviously not too ambitious for Bitcoin to attain. The last time Bitcoin (BTC) price touched this level was 12 May 2022, and with conditions generally improving in relation to regulations and adoption, the chances for revival are high.
One underlying characteristic prevalent in the market is the sustained luster of Bitcoin’s most dogged institutional buyers. Top on this list is MicroStrategy Incorporated, the blockchain payments first that has continued to increase its BTC holdings.
While Wolfe Research’s projections are a fair estimation, more bullish predictions have been shared by other analysts in recent times.
Bitcoin ETF and Halving Sentiment
Two major trends the market is looking forward to that can drive the price of Bitcoin (BTC) is the sentiments around potential approval for a spot Exchange Traded Fund (ETF) product tracking the asset from the United States Securities and Exchange Commission (SEC)
With the likes of BlackRock, Fidelity Investments, VanEck, and Bitwise in the race to get their products approved, Bloomberg Analysts have maintained their 90% probability of securing approval for the cryptocurrency. Should this approval be secured, it will usher in institutional capital and help drive the price of Bitcoin to new highs.
The sentiments surrounding the upcoming Bitcoin halving event are also another one that can shape the way the market embraces BTC in the coming months. Slated for April, the system reward will be slashed from 6.25 BTC to 3.125 BTC, effectively reducing the rate of emission of the premier cryptocurrency, solidifying its deflationary status, and potentially enhancing its price growth moving forward.