Is the new Bitcoin price a good time to buy?

Spread the love

Bitcoin’s price has increased dramatically in the last year. Although the bull market started towards the end of 2020, significant gains were seen in the first quarter of 2021. As comparison to the coin’s previous price experience, Q1 of 2021 was a very notable time frame in terms of the returns BTC was able to generate.

On the 19th of February, Bitcoin broke through the $55,000 resistance level for the first time. This was followed by a market break into the $60k mark. However, after the breach on February 19th, and amid the overwhelming bullish outlook for the currency, Bitcoin has been a target of the push and pull syndrome – a mechanism in which an asset experiences consecutive cycles of minor price corrections.

While the overall outlook for Bitcoin is bullish and it may well be on its way to hit $80k in the coming months and even $100k before the close of the year, what signal is it giving traders who are more interested in short-term trades?

Interestingly, data provided by Santiment shows that the market sentiment has changed drastically for the king coin and the market’s largest altcoin – Ethereum. The aforementioned data highlighted that the weighted sentiment for both assets fell to the extremely negative territory after BTC retraced and fell back under $60k and ETH flipped the $2k support back into a resistance level over the week.

However, does this also imply that there is a bright side for traders in their bid to accumulate more of each of these two coins? In the past, as per the data, during times of such “negative” sentiments, accumulation has continued and has fueled a trend reversal, one enabling the price to surge. The FUD in such market circumstances for Bitcoin invariably proves to be a good buying opportunity, as demonstrated by previous phases wherein the coin has been subject to price corrections.

Source: Glassnode

Furthermore, it is easy to see that there has been a price correction in the short term. According to Glassnode data, BTC flowing into exchanges recently reached a one-month peak. This is usually a result of short-term hodlers shifting their hodling habits. When the price rises, many traders take advantage of the short-term profits, which may be one of the reasons Bitcoin has failed to break through the $60k barrier for so long without having a turnaround.

RECOMMENDED READ:  Stormy seas echo in India as officials adamant about the ban on crypto

However, this has been valid for even the range up to $40k, and it could only be a matter of time before the present resistance caves in as well.

These small corrections are the only “low points” that could validate the “buy low, sell high” slogan for new entrants joining the current BTC market. If the price is expected to rise in the coming months, as it has in the previous three months, price corrections are likely to be lower in margins.

Despite market corrections, the largest fall in the last week have been less than 7%. When the bull run enters its next step, these corrections can become more frequent, but they may also become smaller. As a result, recent market corrections do not actually indicate the conclusion of the bull run, but rather a comparatively decent entry point and a buying opportunity.

 412 Interactions,  4 today

READ ALSO:
RRipple to Provide ODL Metrics to Institutions and Private Clients

Matt Hamilton, director of developer relations at RippleX, shared on Twitter that Ripple expects to add ODL indicators to its Read more

What is the concept of Crypto Arbitrage? – Earn Money With Cryptocurrency

Where there is a price gap between two or more exchanges, there is an opportunity for cryptocurrency arbitrage. Arbitrage is Read more

The Bank of Brazil is the first state-backed bank to give customers exposure to a cryptocurrency exchange-traded fund (ETF).

The launch of Brazil's first crypto ETF has been delayed, but not due to any failure of planning. The Bank Read more

Satoshi Nakamoto, the creator of Bitcoin, is also one of the world’s top 20 wealthiest people.

Following the publication of the 2021 list of billionaires by the American business journal Forbes, this news focused on the Read more

Central Bank of Nigeria (CBN) and Nigeria’s SEC iin talks about crypto regulation, 2020 crypto guidelines  suspension unchaged.

The Securities and Exchange Commission (SEC) of Nigeria has reported that discussions with the Central Bank of Nigeria (CBN) about Read more

The XRP Community’s Reaction to the SEC’s “Sleazy” Move

The Securities and Exchange Commission (SEC) case against Ripple Labs, as well as executives Brad Garlinghouse and Chris Larsen, seems Read more

What Are the Odds of a Six-Figure Bitcoin in 2021?

Bitcoin (BTC) scaled a new all-time high this week, climbing to nearly $65,000 on Wednesday, April 14th. With Bitcoin's price Read more

Three North American Ethereum ETFs get approved in a single day.

When it comes to Ethereum ETFs, Canadian stock market holders will shortly have a plethora of options. Although obtaining exposure Read more

As the value of DeFi tokens rises, CRV predicts a bumper harvest for ‘DeFi Summer 2.0.’

The seasons are changing, and economies are shifting; will this be a banner summer for decentralised finance? Start the tractors: Read more

How Protocol updates and Google Cloud convergence boost the price of EOS by 245% in 2021.

After protocol updates and high-profile partnerships drew retail buyers, the price of EOS reached its highest level since 2018. On Read more

Leave a Reply

Contact Us