Bitcoin’s new all-time high of $58,000 attained a week ago was short-lived as two days later, prices tumbled and Bitcoin lost more than a fifth in value before a mild correction temporarily revived the market. Bitcoin’s decline to $46k left holders panicking, mostly because there were doubts about the leading asset making its usual healthy correction.
BTCUSD Chart By TradingViewTether had fallen prey to American regulators who labeled it fraudulent, banned it from carrying out trading activities in New York, and slammed it with an $18.5 million fine. These events have been pointed to by many as the cause of Bitcoin’s decline. The brewing FUD is thriving on the notion that a crash to much lower levels is incoming. But here’s what analysts have to say about the asset, where it’s headed, and whether the red market is here to stay.
To buy or not to buy the dip?
Of course, these takes aren’t financial advice, but technical and fundamental analysis has guided their conclusion. Even though most analysts’ are as bullish as ever, CryptoWhale insists that dip buyers must take caution before tapping sellers. “Be careful with “buying the dips” early” he warns.
He recalls how the market didn’t move in favor of 2018 dip-buyers, saying;
“That turned out to be a fatal mistake. As we know, BTC plunged over 85%, and most alts went on a death spiral for 2 years, dropping 95-99%.”
In contrast, other analysts are sticking to a perceived upside flip bound to occur. The fundamental factors include Coinbase’s premium performance, miners’ activities, and futures funds movement.
Analyst Joseph Young bares it out in the tweet quoted below.
“I’m expecting a gradual Bitcoin recovery.
– Coinbase premium consistently positive
– Miners sold a lot of Bitcoin (peaked selling pressure)
– Futures funding rates completely reset
Some more stablecoin inflows and it would be more optimistic.”
Meanwhile, this head of a Crypto asset management fund is drawing traders’ attention to the possibility that whales are dumping prices to get retail traders to sell.
“Reminder- some folks holding Bitcoin have *weak hands*. People sold BTC 10% higher than where Elon just bought $1.5bn. People sold days after Tether risk was removed in its entirety.” Also keep in mind there are large players pushing prices down to fill bids. Act accordingly.”
As of publication, Bitcoin is striving to correct upwards. An overnight 4% surge is positioning Bitcoin for a swing to prior support. A breakout could usher in a fresh push to $48,000.