• Wolfe Research positions itself "somewhere in the middle," suggesting a favorable entry point is approaching, as per an Investing.com report.
• Analysts indicated that risk appetite has not fully returned, as most digital assets continue to decline.
• They added that ETF flows remain “weak” indicating bearish sentiment.

Wolfe Research reportedly said on Thursday that the crypto market is in a state of "maximum disagreement” and the current sentiment could bring more opportunities. 

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According to an Investing.com report, Wolfe’s analysts believe the current market is split into two halves. One fraction believes that the crypto industry is heading for a bear market, while other market participants believe “the bottom is in on every bounce.” 

Wolfe said its own sentiment is "somewhere in the middle," but conditions are getting close to a favorable entry point. Despite its recent bounce above $90,000, the firm believes Bitcoin might go as low as $75,000. 

Retail Traders ‘Bearish’ On Bitcoin

Bitcoin was trading at around $92,555, down over 10% in the past month. On Stocktwits, the retail sentiment around BTC remained ‘bearish’ over the past day.

According to Coinalyze, Bitcoin's derivatives activity was rather low over the last 12 hours, with total liquidations of about $740,000. Most of the forced unwinds were short positions, which lost around $622,000. Long positions, on the other hand, just lost about $119,00. 

Weak ETF Flows Cap Bitcoin Rebound

According to Wolfe, excitement has not returned, as ETF flows remain "weak". As of Wednesday, U.S. Bitcoin Spot ETFs saw daily net outflows of $14.90 million. On the other hand, Ethereum ETFs saw inflows of $140.16 million.

Researchers also retained their cautious view, highlighting the fact that most digital assets are still experiencing broad drops, implying that risk appetite has not entirely reset. 

The analysts said that crypto has gone back to a critical long-term support zone that has signaled prior trend reversals, and momentum indicators are starting to look better. The next big technical test for Bitcoin now stands at the 50-day moving average, which is about $101,000. The market's next leg will test a key psychological barrier at $100,000.

Read also: Simon Dixon Says Altcoins Exist Only To Acquire Bitcoin

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