Bitcoin Price Crash: Here’s When You Should Buy The Dip, Analyst Maps Entry Points
Renowned cryptocurrency analyst, Crypto Banter, has shared his insights on the recent Bitcoin market trend. According to him, it is common for a period of decline to be followed by a pre-halving dump, which typically occurs within two months or eight weeks after the halving event. This phase often entails choppy price movements and shakeouts.
Analyzing the Pre-Halving Dump
In terms of whether the dip has concluded or is nearing its end, the analyst points to recent data indicating the minting of another billion dollars’ worth of Tether tokens. Historically, injections like this into the market have coincided with significant market bottoms. The current situation is even more pronounced with Tether’s aggressive printing surpassing previous instances, such as the FTX collapse.
Furthermore, the analyst advises monitoring trading volume, as increased activity is needed to push prices up from their current lows. He suggests that the price is likely to remain within a specific range. When looking at longer timeframes, this range is estimated to be between $50,000 and $77,000. The current price is around the mid-point of this range. It is possible for prices to drop slightly further, but as long as they don’t consistently fall below $59,000, there remains an opportunity to buy in and benefit from the dip.
Strategic Buy Levels
The analyst also highlights that even if prices were to drop to approximately $52,000, it would still be a favorable buying opportunity. This level aligns with a key indicator, the 21 exponential moving average on longer timeframes.
According to the analyst, “So the short cross below the medium time frame moving average means you have to look to the next moving average, which is your high time frame, coming in as support. It’s constantly rising every five days, which is obviously a good thing because that means the validation zone becomes higher and higher. Ultimately, around that $52 to $54k level is fair game if you do see another drop. That will be the zone to pick up more Bitcoin.”