The well-known market analytics firm Wolfe Research predicted in a recent report that the next decline in Bitcoin may present a sizable chance for purchases.
The research group located in New York is projecting that the price may increase to $40,000.
According to statistics from TradingView, the price of bitcoin is presently $37,314.
All eyes on monthly close
A few days before a crucial monthly closure, traders and investors are keeping a careful eye on Bitcoin’s performance.
The remarkable occurrence of the digital currency’s recent ascent to above $38,000 boosted investor enthusiasm and improved market sentiment. The difficult part is maintaining this high, though.
Popular chartist Scott Redler recently told aggressive traders to move their stop to $34,900 after the bellwether cryptocurrency failed to maintain the $38,000 mark, according to U.Today.
Well-known trader DonAlt provided a brief summary of the market’s present situation in a recent post on the social networking site X: “Below $35,000. It’s finished. Over $37.2k? We may return. somewhere in the middle? It’s really choppy.
Grain of salt
Be cautious when interpreting Wolfe Research’s positive forecast for Bitcoin’s price after the dip.
For example, Wolfe Research had stated in September that the long-term price momentum of Bitcoin was breaking. Paradoxically, a significant price increase occurred right after this forecast.
This serves as a warning that forecasts in the erratic realm of cryptocurrencies are frequently speculative and susceptible to sudden shifts.