Bitcoin’s price may be due for one more pullback in the coming weeks and that could be a good opportunity to buy more of the cryptocurrency before its next leg up, according to Wolfe Research. The flagship cryptocurrency has been riding a wave of positive momentum driven primarily by enthusiasm surrounding the prospects for regulatory approval of a spot bitcoin ETF in the U.S. After stagnating around $30,000 for much of the year, bitcoin has steadily climbed to new 2023 highs in recent weeks โ breaking past $38,000 on Friday, after reaching $37,000 just a couple weeks prior. The next stop could be as high as $40,000, according to Wolfe’s Rob Ginsberg. “[Bitcoin] now sits within reach of having retraced 50% of the decline off its highs,” Ginsberg wrote in a note last week. “With ETF excitement growing and money continuing to pour into the space, we feel there’s plenty of upside left to be had. However โฆ near term price action may provide for one more buying opportunity before continuing higher.” BTC.CM= 1Y mountain Bitcoin (BTC) now has retraced nearly 50% of the decline off its 2021 all-time high. “As MACD [moving average convergence/divergence] rolls over and overbought conditions come in, all signs point toward a near-term pullback,” he added. “We would use it as a buying opportunity as the next move higher likely takes price above $40,000.” Ginsberg pointed to bitcoin’s “wildly impressive” year in total, with a year-to-date gain of 120% โ despite months of lethargy in the spring and summer. Although on Monday bitcoin was back down to about $36,800, according to Coin Metrics, it has still retraced nearly 50% of its decline from roughly $69,300 in November 2021 to about $15,200 at the end of 2022. Meanwhile, ether is retesting and consolidating at the $2,000 level, which it hit earlier this month for the first time since April and which has proven a ceiling for the second largest crypto coin for more than a year. Ginsberg said ether is “right on the cusp” of a breakout. โCNBC’s Michael Bloom contributed reporting.
Buy a Bitcoin pullback before it gets to $40,000, says Wolfe Research
