Wall Street Analyst: Opportunity to Buy Bitcoin on the Low, Where is BTC's Key Support Level?
Table of Contents for this article
• Profit-taking is more likely to continue
• Bernstein Raises Bitcoin Year-End Price Target to $90,000
• Opportunity to buy on the low side
Crypto markets have been more down than up over the past 24 hours, with bitcoin giving back Wednesday's gains driven by a dovish tone from the U.S. Federal Reserve and trading below $65,000.
Some torrents have outperformed Bitcoin, with Ripple's XRP, decentralized data storage platform Filecoin's FIL and Internet Computer's ICP token up 6%-7% over the past 24 hours, while Solana (SOL), Avalanche (AVAX) and Aptos (APT) are down 2%-5% over the same period.
Profit-taking is more likely to continue
JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report that two metrics, JPMorgan's futures site proxies and the premium of bitcoin futures over spot, suggest that bitcoin remains overbought.
Analysts say these indicators suggest that positions have only been marginally closed so far. they said:
Both indicators suggest that Bitcoin remains in overbought territory despite the sharp correction over the past week, and in fact, this profit-taking is more likely to continue as the halving event approaches, especially in the context of a correction over the past week that still looks overbought.
Last week, JPMorgan analysts predicted that the price of bitcoin could fall to around $42,000 after the halving, citing reduced miner incentives and rising production costs.
The massive outflows recorded by grayscale GBTC so far appear to be exacerbating bearish sentiment, with GBTC's reductions outweighing the additions made by other new bitcoin ETF issuers, with GBTC's bitcoin holdings having fallen by more than 40% since it converted to a spot bitcoin ETF on January 11th, and net outflows from several of the major ETF issuers approaching $749 million since the beginning of this week so far.
However, Eric Balchunas, Bloomberg's chief ETF analyst, denied the impact of gray outflows on Bitcoin's price action, noting that there is no direct correlation between ETF flows and BTC's price performance.
Bernstein Raises Bitcoin Year-End Price Target to $90,000
According to a research note from Bernstein, the firm raised its expected price target for bitcoin to $90,000 by the end of this year, up from $80,000. the firm also raised its outlook for cryptocurrency mining stocks based on the rise in bitcoin and the positive response to the new spot bitcoin ETF.
Bernstein raised its price target on CleanSpark from $14.20 to $30 and maintained its Outperform rating, lowered its price target on Riot Platforms from $22.50 to $22 and gave the stock an Outperform rating, and raised its price target on Marathon Digital (MARA) from $14.30 to $23.
Bernstein analysts Gautam Chhugani and Mahika said:
With a new bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and record miner dollar revenues, we continue to find bitcoin miners attractive to equity investors looking to enter the crypto cycle.
Opportunity to buy on the low side
Bernstein analysts said in a report this week that Bitcoin's recent pullback from all-time highs of more than $73,000 to $10,000, and at one point below $63,000, represents a temporary "buy-low opportunity" before halving, they said:
We expect the market to consolidate before halving and then expect the overall bull market to continue.
Some analysts believe that Bitcoin could reset the 'sustainability of the bull market' with a deeper decline. anonymous cryptocurrency trader Jelle analyzed on the X platform that unless BTC holds the $65,300 level, the pullback won't be over and that the price could continue to consolidate for some time in its current range and would need to reclaim the $69,000 price level (a peak in the market cycle for the year 2021) in order to rekindle the rally to higher prices.
