Bitcoin’s price corrections are very common in every bull run. Typically, the corrections ranges are between 10-20%, but we saw a major 40% correction this time. This has put Bitcoin’s price below $54k from an all-time high of $69k in under a month. And analysts say that the recent price correction and the current rate at which it is trading is a sale. It does seem very attractive to me, and I am pretty sure a lot of people are going to buy the dip below $50k. Even El Salvador’s president Nayib Bukele bought more Bitcoins in the price crash.
Keep a close eye on these levels
Even though I am certain that Bitcoin’s price below $54k is not going to last for a long time, some critical levels will decide the price action for the near term. The resistance at $50.5k that took so many tries to conquer for Bitcoin has become resistance again. The range between $50k-$51k will be critical to make the market sentiment bullish again. As of now, we are in extreme fear, with the fear and greed index pointing at 18. I don’t see this as a bad thing as market corrections generally stop when there is extreme market fear, and then we move up again.
After this level, we need to have an eye on the $52k-$53k price range. This level was good support for Bitcoin and gave good support. So, it is important that Bitcoin reaffirms support on the same. If you are worried that we have already seen the cycle top for Bitcoin, I don’t think so. This is because compared to previous bull runs, we still haven’t seen a parabolic rally for BTC.
Ethereum is holding up well
Ethereum is holding up pretty well against Bitcoin, and the ETH/BTC trading pair is also almost at an all-time high. The price of Ethereum did drop to $3,500 in the crash but recovered fast and is now already above $4,200, which is again above the critical level of $4,000. On the other hand, BTC is still struggling to get the support back at $50k. It will be interesting to see if Ethereum topples Bitcoin to become the largest cryptocurrency by market cap in this or the next bull run.
What are your thoughts as Bitcoin’s price is below $54k, and are you buying the dip? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin comes down crashing to $42k after $56k support breaks.
