According to Bravo Research, the latest Macro Report from the investment firm suggests that Bitcoin (BTC) would be an attractive opportunity for investors to "buy the dip" if it falls to $80,000. This prediction is based on the firm’s analysis of current market trends and the potential for a significant correction in the BTC price.
The 2025 Bitcoin Crash?
In its latest report, titled ‘Is the 2025 Bitcoin crash starting?’, Bravo Research warned that "parabolic" Bitcoin (BTC) price strength may be nearing an end. The report notes that the start of 2025 could mark a significant turning point for the BTC market.
Bitcoin Price May Match Stocks’ Weakness
The past few months have seen a decline in the performance of both stocks and Bitcoin (BTC). While some analysts had predicted a strong rebound in the new year, current market conditions suggest that this may not be the case. According to Bravo Research, Bitcoin faces fresh headwinds as it lingers below the $100,000 mark.
Factors Contributing to the Downturn
- Record outflows from the largest US spot Bitcoin exchange-traded fund (ETF)
- Flagging stock market performance
- An increasingly hawkish Federal Reserve
These factors have deflated Bitcoin’s bull market optimism and created an environment ripe for a significant correction.
A Rebalancing in BTC Price Performance
Bravo Research suggests that a rebalancing in BTC price performance could be on the horizon. This means that the current trend of higher highs and lower lows may come to an end, paving the way for a potential correction.
The Opposite of September 2024’s Setup
In contrast to last year’s setup, when stocks hit new highs while Bitcoin struggled, Bravo Research suggests that we might see the opposite occur this time around. This would mean that Bitcoin eventually catches down to stocks’ weakness, creating an attractive opportunity for investors to "buy the dip."
BTC/USD vs. S&P 500 ETF
An accompanying chart from Bravos Research compared BTC/USD to the S&P 500, highlighting a notable divergence in December. This divergence suggests that Bitcoin may be poised to correct, potentially creating a buying opportunity.
Buying the Dip Around $80,000
If Bitcoin does indeed correct, Bravo Research recommends looking to buy the dip around $80,000 for the next leg higher. This price target has become increasingly popular among investors and analysts in recent weeks.
Don’t Count on Bitcoin ETF Flows
The report also examines the impact of ETF performance on price, even with the new year sell-off from BlackRock’s iShares Bitcoin Trust (IBIT) yet to occur at the time of its publication. According to Bravo Research, the current pace of ETF buying could lead to a surge in the BTC price.
ETF Buying and Price Impact
- Bitcoin ETFs currently own 1.15 million Bitcoin
- 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.
US Spot Bitcoin ETF Netflows
Even if ETF flows were to flip positive again, BTC/USD might not follow suit. As evidence, Bravo Research points to the way events played out in March 2024, when prices fell by 30%, despite ETFs still accumulating.
Important Considerations
This article is for informational purposes only and should not be considered as investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Conclusion
The latest Macro Report from Bravo Research suggests that Bitcoin (BTC) would be an attractive opportunity to "buy the dip" if it falls to $80,000. The report highlights several factors contributing to the current downturn, including record outflows from the largest US spot Bitcoin exchange-traded fund (ETF), flagging stock market performance, and an increasingly hawkish Federal Reserve.
While ETF buying has been a significant contributor to the BTC price in recent months, Bravo Research notes that even a slight slowdown could trigger a decline. Ultimately, investors should be aware of these risks and conduct their own research before making any investment decisions.
References
- Bravos Research Macro Report: ‘Is the 2025 Bitcoin crash starting?’
- Cointelegraph report: ‘Bitcoin traders s’ "e ‘mass’ve’ $130K+ BTC price next as TradFi returns’
