Bitcoin Dips Below $59K: Is It Time to Buy the Dip?

John Darbie
Photo: Finoracle.net

Bitcoin Price Slumps Below $59K: Good Time to Buy the Dip?

Bitcoin investors are on edge as the cryptocurrency plunged below $59,000, hitting a low of $58,601.70 after peaking at $61,790 in the past 24 hours. This 4.5% drop highlights increasing bearish activity, with Bitcoin’s Fear Index reaching 30, indicating rising investor concern.

But, is there a buying opportunity amidst the panic? Dive deeper to find out what analysts are saying and what the future might hold for Bitcoin.

A Cycle of Corrections

In this cycle, Bitcoin has undergone another notable correction, marking its sixth significant drop. This recent decline was one of the fastest and sharpest yet, which lasted for 17 days, dropping by almost 20%.

Prominent crypto trader Daan Crypto Trades has underscored this rapid correction, comparing it to similar past occurrences. For context, Daan highlighted two other corrections of similar duration within this cycle. The first lasted 12 days following the Bitcoin ETF sell-off, during which Bitcoin fell by 21%, losing almost $10,670 from its price. Another correction lasted 17 days, resulting in a 19.9% drop and a price decrease of $6,191 after the failure of SVB, one of the largest banks by assets.

Glimmers of Hope Amid Uncertainty

Despite the current uncertainty, technical indicators suggest potential for a price recovery. Analyst Ali Martinez noted that Bitcoin’s MVRV Ratio has dropped below -8.40% four times since February 2023, each time triggering significant price jumps of 63%, 100%, 92%, and 28%.

With BTC currently below $60,000 and the MVRV Ratio at -8.96%, Ali sees this as a promising buying opportunity, anticipating bullish movements ahead. Additionally, the TD Sequential indicator has flashed a buy signal on Bitcoin’s daily chart, forecasting a rebound spanning one to four daily candlesticks.

Bullish Signals on the Horizon

Echoing the bullish sentiment, crypto analyst Axel Adler highlighted the Short-Term Holders’ (STH) spent output profit ratio (SOPR), which recently stood just above 1 on its 90-day moving average (90DMA).

Historically, Bitcoin tends to correct until this metric dips below 1, signaling a potential turnaround favoring bullish momentum.

The analysts are divided – what’s your prediction for Bitcoin’s future?


Note: This article is for informational purposes and should not be considered financial advice. Always do your own research before making any investment decisions.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.