In a recent analysis, Wolfe Research, a prominent name in market analytics, has forecasted that Bitcoin's next pullback could be a significant buying opportunity.
The New York-based research firm is predicting a potential rise in price to $40,000.
Bitcoin is currently trading at $37,314, according to TradingView data.
All eyes on monthly close
Traders and investors are closely monitoring Bitcoin's performance just days ahead of a pivotal monthly close.
The digital currency's recent climb to over $38,000 was a notable event that sparked investor enthusiasm and translated into stronger market sentiment. However, the challenge lies in sustaining this peak.
As reported by U.Today, popular chartist Scott Redler recently advised active traders to adjust their stop to $34,900 following the bellwether cryptocurrency's failure to hold the $38,000 level.
Popular trader DonAlt summarized the current state of the market succinctly in a recent post on the X social media platform: "Sub $35k? It's over. Above $37.2k? We might be back. In between? It's so chop."
Grain of salt
Wolfe Research's bullish prediction for Bitcoin's price post-pullback should be taken with a pinch of salt.
For instance, in September, Wolfe Research had declared that Bitcoin's long-term price momentum was breaking. Ironically, this prediction was followed by a substantial price surge.
This serves as a reminder that predictions in the volatile world of cryptocurrency can often be uncertain and subject to rapid change.