© Reuters
The current price correction, characterized by the liquidation of excessively bullish positions, may represent an attractive “buy the dip” opportunity for astute investors.
With Bitcoin firmly establishing itself as a crucial institutional asset, the emergence of new Bitcoin exchange-traded funds (ETFs) marked an important milestone.
“Bitcoin is now a major institutional asset like never before,” analysts at Decimal Digital Currency said in a note.
Not only are these ETFs seeing significant weekly net inflows, but they also collectively hold a staggering amount of Bitcoin, surpassing the million mark when considering entities like MicroStrategy.
This accumulation trend is already exerting its influence on Bitcoin's price trajectory, with the impending halving set to reduce the new monthly supply of BTC by approximately $800 million at current prices.
Decimal Digital Currency analysts expect this dynamic to drive a further climb to new all-time highs throughout 2024. Still, cryptocurrency investors often find themselves vulnerable to significant losses when market sentiment shifts.
“We are not surprised to see this correction before the halving, liquidating the most extreme bullish bets before a bullish continuation, and we would definitely call something like this a 'buy the dip' opportunity,” they said.
Analysts anticipate a period of extreme bullish activity, punctuated by occasional dramatic sell-offs, as market participants navigate their pre- and post-bitcoin halving strategies.
As investors rush to accumulate Bitcoin, analysts warn that “price action needs time to follow local supply and demand.”
“We may see exuberant bullish action, dramatic sell-offs, or both, before and after the halving as market participants move in and out of their halving bets,” the analysts further noted. of Decimal Digital Currency.
