Bitcoin Faces Adjustment Potential: $80K Identified as Key "Buy the Dip" Level

The recent parabolic price increase of Bitcoin is being challenged as many macroeconomic factors impact this cryptocurrency. According to the latest macroeconomic report from Bravo Research titled 'Is the collapse of Bitcoin in 2025 beginning?', published on December 31, Bitcoin may have to face new obstacles in early 2025. ETF Money Outflow and Weak Stock Market Putting Pressure on BTC Currently trading below $100,000, Bitcoin is under pressure from record outflows from the largest US Bitcoin exchange-traded fund (ETF) and poor performance in the stock market. In addition, the increasingly hawkish stance of the Federal Reserve has dampened optimism around the Bitcoin price surge. Bravo Research warns that Bitcoin may "catch up with the weakness of stocks" in the coming months. The divergence between Bitcoin (BTC/USD) and the S&P 500 has been highlighted, with a report comparing market dynamics in December 2024 to previous trends. "This is the opposite of the setting of September 2024, when stocks hit new highs while Bitcoin struggled. At that time, Bitcoin finally caught up with the strength of stocks. Now, we could see Bitcoin catch up with the weakness of equities," the report noted. Despite the parabolic rise, analysts believe that the price of Bitcoin could decline before continuing its upward trajectory. Bravo Research identifies $80,000 as a potential level to "buy the dip" for the next phase of the bull market.

Bitcoin ETF Flow: Double-edged Sword The report also highlights the role of Bitcoin ETF in impacting price fluctuations. Bitcoin ETF currently holds 1.15 million BTC, with an average daily accumulation rate of 3,000 BTC. At this rate, researchers estimate that Bitcoin could increase by an additional 50% in just 50 days. However, Bravo Research warns that even a small slowdown in ETF demand can cause price declines. This was illustrated in March 2024 when the price of Bitcoin dropped 30% despite continued ETF buying. "So, March 2024 is a great time to sell, although Bitcoin ETFs are still accumulating", the report points out. While the ETF money flow remains the main driving force behind demand, the report emphasizes that BTC/USD is not always suitable for the ETF buying model, making the possibility of adjustment feasible.

Prospects for 2025 When 2025 comes, the performance of Bitcoin may still be closely tied to macroeconomic trends, ETF momentum, and its relationship with traditional markets. While Bravo Research sees $80,000 as an important level for long-term accumulation, short-term prospects are still uncertain as Bitcoin navigates the parabolic phase and a larger economic environment. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)