Bitcoin Breaking $49K Is Important For The Next Attempt To Break ATH
Bitcoin has again dipped back down below its $47K resistance point. This time, the price of the digital asset looks to have turned its attention downwards.
If the downward correction continues, it is important to know where it could lead. Price dips are not a novel concept in bull markets. In fact, price dips are often expected following a rally in the price of any digital asset.
This drop in price is usually the market taking a bit of a step backward, and not necessarily pulling out of the asset, although that usually happens as well. Bitcoin had only recently broken $50K and did not rest at this position for long. A small downward stretch is likely lead to a bounce-back that will push the price higher back above $50K. With a consolidation point putting the digital asset at a reasonable position above $50K.
A Potential Setup For BTC New All-Time High
For bitcoin to hit a new all-time high as the market expects, some factors would play into this. In other words, certain signals would need to be triggered for this price jump. Bulls still have majority standing currently, but it is no secret that the bears are determined to drag down the price of the asset.
$BTC 1st weekly bear forming after more than a month of bulls. Bears trying to retest 45k or that 40k breakout level. We could go ranging around these parts but if market reclaims 49k, more likely we see test of ATH sooner than later. #Bitcoin#alts$VET$WOO$ETHpic.twitter.com/lhav0cG8EQ
As expected, bears are trying to straighten their hold on the market, by pulling the BTC price down to test the $40K to $45K range again in the coming days. Current trends for the past 24 hours could very well put the market on track for this breakout level. Unless BTC sees a U-turn.
While $45K is more than likely, BTC price charging back up past $49K will very well see a break away from current bear trends. Not only will this totally weaken bears’ hold but likely will also trigger a run-up towards $60K.
Good Time To Buy Bitcoin?
Regardless of the recent dip, market sentiments have not moved much. The Fear & Greed Index shows that the market has now moved out of “extreme greed.” But generally has remained in greed, with a current score of 75.
Bitcoin’s current price is mostly a buying opportunity for investors in it for the long run aka ‘hodlers’ or ‘diamond hands’. Losing over $3,000 in the space of 24 hours will usually see a price rebound. The weekend will most likely usher in an uptick in trading volumes that will see BTC recover above its crash point.
At the time of writing, Bitcoin is trading at $47,600, with an overall market cap of $894 billion. The beginning of the week saw the price break out past $50K. Current trending patterns indicates that Bitcoin will usher in the weekend below $50K.
