After a series of sideways trading sessions, BTC price has finally made a thrilling move downward, bringing hope of a big price action ahead. Several analysts see this trend as a prime opportunity for Bitcoin investors to buy the dip and reap the rewards.
However, not everyone is optimistic about the recent price drop, as some noted that the severe bearish momentum below the immediate support level sent shockwaves to the market, and long-term holders’ are losing their bullish sentiments, which may pave the way to close their positions.
Is BTC Price Dip Building A Buying Opportunity?
The recent dip in the Bitcoin price chart has again worried investors as it wiped out more than 50% gain it made in January. After turning investment portfolios red, Bitcoin shows no sign of an upward reversal. While some investors are feeling uneasy, analysts relieve them as the price dip creates a profitable buying opportunity to accumulate more Bitcoins to maximize gain in the upcoming bull run.
On-chain analytic firm, Messari, revealed that Bitcoin price had been significantly influenced by the FTX’s collapse rather than macroeconomic events like inflation, job growth, and interest rate hike. The firm stated that the BTC price decreased by 25% following the demise of FTX.
However, despite a solid bearish divergence and several bankruptcy filings in the space, Bitcoin’s on-chain activity did not witness a slump. According to Glassnode, the number of Bitcoin addresses holding non-zero balances continues to rise exponentially.
It is reported that the metric rose above 43.8 million this week, signifying investors’ entry amid the market dip. Moreover, Bitcoin’s fear and index metric trades at 48, which indicates a neutral sentiment among traders even after the solid plunge.
Bitcoin Is Preparing For A Big Target Ahead
Bitcoin price had dropped over 5% in the last 24 hours as sellers placed short positions when BTC troubled to trade above its crucial price point of $23K. As BTC closed its price below the support of 31.8% Fib retracement at $22K, it witnessed intense bearish domination that plunged its price to $21.7K.
According to CoinMarketCap, the price of BTC moves near $21.8K. The drop below the EMA-20 trend line has strengthened bearish goals that witnessed massive liquidation of over $50 million. Analyzing the daily price chart, Bitcoin is repeating its December consolidation level, which was formed after the BTC price got rejected at 4H-MA50.
A bullish move in the BTC price chart is expected by the end of February as the Stochastic RSI makes a bullish cross inside its oversold support region, which previously marked a bullish rally in January. To confirm a bullish move, BTC needs to hold its price above EMA-20, and a breakout near $23K will again fuel a bullish excitement and set a target of $29K.
Credit: Source link
