Bitcoin fell below its resistance level of $ 47,000 once again. This time, the price of bitcoin seems to be heading downwards. It is important that you know where this downward correction could lead, as this downward correction continues. Bull markets aren’t new to the idea of price cuts. Price drops are not uncommon in bull markets. They are usually expected to occur due to a rise of any digital asset’s price.
Related reading: Why an 18% decline in Bitcoin could still prove to be bullish| Why an 18% drop in Bitcoin could still be bullish
This price drop is usually caused by the market pulling back. This does not mean that you should retire from the asset. Bitcoin has not remained in that position for very long, having recently broken $ 50,000. A small downturn will most likely lead the price to rebound and push it back above $ 50,000. A point of consolidation will place the digital asset in a decent position above $ 50,000.
Bitcoin setup for a new all time high
Certain factors are required for bitcoin to reach a new all time high, as the market expects. These signals should be activated to trigger the price rise. While bulls remain the majority, it is clear that bears are determined lower the asset’s price.
BTC price to reach new ATH if bounce back leads exceed $49K | Source: Twitter
This week saw bitcoin’s first weekly bear since the surge. The bears are trying their best to regain control of the market. BTC will be selling at a lower price to retest its $ 40,000 to $ 45,000 level in the next few days. The market could see a breakout at this level due to the current trends. BTC will not make a U-turn unless it does.
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It is likely to fall below $ 45,000, but a rise in BTC’s price above $ 49,000 could lead to a break with current bearish trends. This will not only make the bear less secure, but will also lead to a rise towards $ 60,000.
Is it the right time to buy?
Despite recent declines, market sentiment has not changed much. The Fear & Greed Index indicates that the market has moved away from “extreme greed”. However, the market is still in greed with a score currently of 75.
The current Bitcoin price is primarily a buying opportunity to long-term investors. Also known as diamond hands. A rebound in price is usually possible if you lose more than $3,000 within 24 hours. BTC will likely recover from its crash point this weekend due to an increase of trading volumes.
Source:| Source: TradingView.com: BTCUSD
BTC trades at $ 46,600 as of the writing of this article, with a market cap of $ 881 trillion. The price of Bitcoin surpassed $ 50,000 at the beginning of the week. The asset is expected to drop below $ 50,000 this weekend according to current trends.
Featured image by The Independent, charts from TradingView.com and Twitter.