After briefly dipping below the $37,000 level late on Saturday, the price of Bitcoin (BTC) has recovered back into the low $37,000s, where it continues to trade around 2% lower versus the 18-month highs it hit earlier in the week near $38,000.
Despite the pullback, Bitcoin remains on course to close out the week with solid gains in the region of 6%.
The cryptocurrency, which saw its market capitalization surpass $700 billion this week as per CoinMarketCap, has been performing well in recent weeks amid optimism that the US Securities and Exchange Commission (SEC) is on the verge of approving multiple spot Bitcoin Exchange Traded Fund (ETF) applications in the US, opening the door to a wave of institutional inflows into the Bitcoin market.
News that BlackRock also plans to set up a spot Ethereum ETF took some of the shine of Bitcoin’s rally midway through the week, as investors who had bought Bitcoin on the premise that it will be the only cryptocurrency to gain US ETF approvals in the coming year rotated into Ether (ETH).
But the bulls have largely remained in control and traders are asking whether they should buy this latest dip back to $37,000.
Bitcoin (BTC) Price Prediction – Is It Time to Buy the Dip?
Since Bitcoin began to vault higher in mid-October, buying intra-day/week dips has been a highly profitable strategy.
So just based on the past few weeks, the answer would be yes.
But has Bitcoin come too far in the last few weeks and is a pullback overdue.
Should investors wait for a deeper pullback?
Well, so long as optimism about upcoming spot Bitcoin ETFs remains high and growing, the market is very likely to remain in a short to medium-term uptrend.
Macro has also been acting as a tailwind this month with US bond yields substantially lower and US stock prices substantially higher on hopes the Fed’s tightening cycle is over.
But next week’s US Consumer Price Index (CPI) inflation data would threaten this positive macro trend if it comes in higher than expected and supports the argument that many policymakers at the Fed are still making that higher interest rates might still be needed to properly tame inflation in the US.
An upside inflation surprise could trigger a short-term pullback in the Bitcoin market.
However, any dips back towards key long-term support in the $34,000s may be seen by long-term Bitcoin bulls as a great area to start adding aggressively to their positions.
That’s because Bitcoin has been largely immune to negative macro developments in recent months – take October, for example, when Bitcoin rallied nearly 30% despite a drop in the US stock market as US bond yields hit multi-decade highs.
Even if the macro environment remains unfavorable, Bitcoin has shown it has what it takes to continue performing well, which will increasingly turn traditional finance investor heads as they increasingly look as the Bitcoin as an “uncorrelated” asset with the ability to deliver substantial returns.
Bitcoin Alternative to Consider – Bitcoin ETF Token (BTCETF)
Bitcoin’s near-term outlook remains strong, but with ETF optimism all the rage right now, some in-the-know traders think a new token called Bitcoin ETF Token ($BTCETF) is a potential alternative with even greater potential.
Despite only launching its presale a few days ago, Bitcoin ETF Token has already been able to pull in over $450,000 from investors because of its audacious pitch into the lucrative Bitcoin ETF theme that underpins the current crypto rally.
$BTCETF is also garnering attention because of its DeFi attributes.
$BTCETF tokens can be bought in presale today and staked to earn an annual percentage yield currently sitting at 546%.
The post Bitcoin Price Prediction as BTC Experiences a Pullback to $37,000 – Time to Buy the Dip? appeared first on Cryptonews.
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