Bitcoin (BTC) has seen a rapid recovery over the past two days, reaching above $93,000. This rapid recovery has fueled predictions of a bottom, with Wolfe Research also noting that the bottom may be coming.
Accordingly, Wolfe analysts Rob Ginsberg and Read Harvey noted in a note published on Thursday that market participants are, in fact, divided.
Accordingly, he stated that half of the investors are convinced that the bear market has begun, while the others believe that the bottom has been reached.
At this point, analysts noted that the cryptocurrency market is divided between bulls and bears, creating a potential buying opportunity.
“Wolfe Research positions the market somewhere in the middle but also believes investors may be approaching a suitable entry point,” the analysts said.
Despite Bitcoin making a swift and strong recovery above $90,000, Wolfe Research reiterated its prediction that Bitcoin will bottom around $75,000, saying, “our view remains unchanged.”
While BTC has returned above $90,000 at this point, Wolfe warns investors to be wary of a bearish wave, citing the ongoing weakness in crypto ETF flows and overall declines in digital assets.
Wolfe recently said that while momentum in Bitcoin is improving in the short term, the next major test will be at $101,000, where the 50-day moving average is.
According to the company, the real first test will be $101,000, but the more meaningful psychological level for investors will likely be $100,000.
*This is not investment advice.
