As fear grips the crypto market, the Bitcoin price has seen a significant increase in selling pressure. With an 18 percent drop in the last two weeks from the resistance trendline, the price action produces a falling wedge pattern on the daily chart as it approaches the $40K threshold. In addition, the death cross raises the likelihood of a bearish continuation.
The death cross of the 50 and 100 day EMA on the daily chart is the result of an 18% drop in the last two weeks. As a result, the coin price reflects an increase in underlying bearishness and suggests a possible fallout.
The daily Relative Strength Index (29) reveals that the coin is oversold and that the bearish move is approaching saturation. As a result, a short retracement before a fallout is probable.
Also Read : Crypto Market Continue to Plunge ! Here’s What Next For BTC, ADA, ETH & VET
Should you buy the dip?
A seasoned trader, Peter Brandt, has some tips for those considering buying the dip. Long-term hodlers may have additional alternatives to purchase bitcoin at a reduced price in the future, according to Brandt’s response to a tweet.
Since 1980, when silver futures hit $50, people have been saying the same things about them, according to a tweet by him.
“It subsequently plummeted to a low of $3.65 and did not recover for another 24 years,” he said. The trader, however, stated that he does not believe bitcoin will continue that path.
On Thursday’s Bitcoin Live conversation, Brandt discussed bitcoin’s violation of the parabolic ascent.
However, he tweeted Friday: “I saw the violation of the parabolic advance and commented on it in real-time to members of Bitcoin Live in real-time, but in hindsight, I might not have taken the event seriously enough. We’ll see.”
Source: https://coinpedia.org/bitcoin/traders-should-buy-the-dip-or-wait-for-more/