Use the pullback in Bitcoin as a buying opportunity.
Last trading at $96,557, Bitcoin is starting to pivot from strong support. From here, we’d like to see an initial retest of $108,000. From there, analysts say the cryptocurrency could rally as high as $250,000 by the end of the new year. In fact, analysts such as Fundstrat Global Advisors’ Tom Lee say it could hit that price thanks to the growth of spot Bitcoin ETFs and U.S. politics.
“In a new CNBC interview, CoinShares head of research James Butterfill says Bitcoin may ultimately hit $250,000, a more than 166% increase from its current value,” added DailyHODL.com. “Butterfill believes the reason Bitcoin may increase more than 60% of its current value this year is due to a favorable US regulatory environment.”
We also have to consider that, Donald Trump is pro-crypto. Back in July, he declared he wants the U.S. to become the “crypto capital of the planet” and Bitcoin the “superpower of the world.” He also wants to create a government stockpile of Bitcoin, create an advisory council, and prevent the Federal Reserve from creating its own digital currency. All of which could easily send Bitcoin prices rocketing higher.
With that, investors may want to consider buying Bitcoin ETFs and related stocks, including:
Pro Shares Bitcoin Strategy ETF (SYM: BITO)
If you believe the value of BTC will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF (BITO). With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin, and is the world’s largest and most actively traded cryptocurrency ETF, according to Pro Shares.
BITO mimics the price of Bitcoin as closely as possible without investing in the cryptocurrency itself. As noted by Money, “Like all crypto ETFs, part of the allure of BITO is that investors don’t need to deal with cryptocurrency wallets and private keys but can instead invest through a broker they already use.”
MicroStrategy (SYM: MSTR)
Last trading at $300, we’d like to see oversold shares of MSTR retest $425 initially. Helping, the company now holds 446,400 Bitcoin. So, when BTC rallies, MSTR is sure to follow. Longer-term, we’d like to see MSTR closer to $500, which could easily happen if BTC explodes as expected.
Coinbase (SYM: COIN)
COIN is just as oversold and could easily rally higher with Bitcoin. Last trading at $257.21, it’s oversold on RSI, MACD and Williams’ %R. We’d like to see it initially retest $320 near term. Helping, analysts at Needham just raised their price target on COIN to $420 from $375.
“The price target increase is driven by significant retail activity returning to the crypto market, with December volumes on track to be the highest ever,” the analysts said, as quoted by TheBlock.co. “Elevated volatility, particularly with Bitcoin around $100,000, and a rise in altcoin activity are major contributors to this volume surge.”
Related Reading: BITCOIN
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