Parabolic Bitcoin Phase: Bravo Research Cautions on Parabolic Decline
Investment research firm Bravos Research says that for around $80,000, Bitcoin would be a buy-the-dip opportunity. On December 31, it released its most recent Macro Report, “Is the 2025 Bitcoin crash beginning?” Bravos cautioned that the parabolic strength of the Bitcoin price could decline around the beginning of 2025.
As the new year begins, Bitcoin is facing new challenges, as the price of BTC/USD remains below $100,000. Bitcoin’s bull market exuberance has been dampened by record outflows from the largest US spot Bitcoin ETF, declining stock market performance, and a more hawkish Federal Reserve. Bravos believes that even while the price of Bitcoin is unquestionably in the parabolic stage, a rebalancing in its performance may now be imminent.
This is the opposite of September 2024’s setup, when stocks hit new highs while Bitcoin struggled. Back then, Bitcoin eventually caught up to stocks’ strength. Now, we might see Bitcoin catch down to stocks’ weakness.
Bravos
BlackRock’s IBIT and Bitcoin ETFs: Could Slowing Flows Spark a Price Decline?
Even though BlackRock’s iShares Bitcoin Trust (IBIT) had not yet experienced the new year sell-off at the time of publication, the paper dissected how ETF performance affected pricing.
Bitcoin ETFs currently own 1.15 million Bitcoin, and still accumulating about 3,000 BTC daily. At this pace, Bitcoin could surge another 50% in 50 days. However, even a slight slowdown in ETF buying could trigger a decline.
Bravos
Given how things transpired during their first year of trading, BTC/USD might not follow suit even if ETF flows were to turn positive once more.
For instance, in March 2024 Bitcoin prices fell by 30%, even though ETFs were still buying. So, March 2024 was a great time to sell, despite Bitcoin ETFs still accumulating.
Bravos
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment