Compass Point Urges Caution on Bitcoin Purchases Below $98,000

Investment bank Compass Point has advised investors to exercise caution when purchasing Bitcoin during price dips until the cryptocurrency surpasses $98,000. According to NS3.AI, this figure represents the average cost basis for short-term holders. Despite Bitcoin's recent rally reaching $97,500, its inability to exceed this threshold has intensified worries about a potential extended downtrend. Additionally, the prevalence of leveraged buying has increased the risk of liquidations, particularly if Bitcoin's price approaches $80,000.