Investment research firm Bravo Research has identified Bitcoin as a potential “buy the dip” opportunity at $80,000 amidst current market volatility. In its latest report, the firm cautioned that Bitcoin’s parabolic price movement may begin to falter at the start of 2025, pointing to a possible decline in tandem with weakening stock market trends.
As Bitcoin starts the new year trading below the $100,000 mark, various factors, including record outflows from the largest U.S. Bitcoin exchange-traded fund (ETF) and an assertive Federal Reserve, have tempered the bullish sentiment that previously surrounded the cryptocurrency.
The report highlights a significant divergence between Bitcoin and the stock market in December. While some investors believe Bitcoin’s price might decrease to align with stock market weaknesses, others see this as a chance to “buy the dip” around $80,000 in anticipation of a rebound.
Additionally, Bravo Research examined the influence of Bitcoin ETFs on the cryptocurrency’s price movement. Despite strong ETF buying activity, which accumulates around 3,000 Bitcoin daily, any slowdown in acquisition could disrupt the upward price trajectory. The firm noted that historical patterns, such as those observed in March 2024 when Bitcoin prices fell despite active ETF purchases, suggest unexpected market behaviors can occur irrespective of ETF actions.
Investors are advised to stay vigilant and conduct thorough research as they navigate the unpredictable landscape of cryptocurrency trading.
