Bitcoin
Here’s Why You Should Buy BTC Now
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- Bitcoin price contemplates a potential reversal after plunging into the weekly imbalance zone stretching from $59,111 to $53,120.
- Social and network metrics predict potential engagement from whales purchasing dives.
- A successful recovery rally could send BTC past the current all-time high of $73,949 and towards $80,000.
Bitcoin The (BTC) price shows signs of a possible reversal but lacks confirmation, which has divided the investor community into two – those who are buying on dips and those who expect a further correction.
Read too: Bitcoin Weekly Forecast: BTC’s Next Breakout Could Boost It Towards $80,000
Bitcoin price drops by double digits
Bitcoin price fell into weekly imbalance extending from $59,111 to $53,120 as mentioned in previous FXStreet posts, flashing a buy signal. But investors will likely be fearful after a 15% drop in the last ten days.
The recent drop in the aforementioned imbalance has offset the build-up on the sell-side liquidity resting around the equal lows of $59,111, allowing sidelined buyers to accumulate. For a recovery rally to begin, BTC needs to form a base around $60,000 and return to the 2021 high of $69,138.
Breaking through the falling resistance level and connecting the lower highs formed since March 14 will confirm a breakout and the resumption of an uptrend. This development could propel BTC to a new all-time high (ATH) and eventually the next key psychological level of $80,000.
BTC/USDT 1-Day Chart
Read too: Week Ahead: Bitcoin Could Surprise Investors This Week
Should you buy BTC here?
Previous publications predicted a drop in imbalance as a good zone to buy BTC. So to answer the question, yes. Here are two reasons why you should pay attention to BTC at current levels.
- The risk-reward relationship is skewed. The upside of this trading idea is $80,000, an increase of approximately 35%, while the invalidation level of $50,000 is 14% away. Investors with low risk tolerance may cut back on trading if BTC fails to recover above $61,150 or turn the $53,120 support barrier into a resistance level.
- According to For veteran trader and technical analyst Peter Brandt, if Bitcoin manages to maintain current lows around US$56,900 and rise, it could indicate a continuation of the bull market.
BTC Analysis by Peter Brandt
According to Santiment’s Whale Transaction Count (WTC), transactions worth more than $100,000 increased between April 29 and May 2, showing that institutional investors could have purchased BTC amid the recent price drop.
Bitcoin WTC
The recent drop in the price of Bitcoin has seen an increase in social volume for terms such as “buy the dip” and “buy”. This index is also in line with what the WTC metric is indicating, adding credibility to the potential reversal discussed above.
All in all, the outlook for Bitcoin price appears optimistic. As mentioned above, the $50,000 invalidation level is a clear indicator of which side is in control. Should BTC turn the aforementioned key psychological level into resistance, it could trigger a 10% drop to the next critical weekly support level at $45,156.
- Bitcoin price contemplates a potential reversal after plunging into the weekly imbalance zone stretching from $59,111 to $53,120.
- Social and network metrics predict potential engagement from whales purchasing dives.
- A successful recovery rally could send BTC past the current all-time high of $73,949 and towards $80,000.
Bitcoin The (BTC) price shows signs of a possible reversal but lacks confirmation, which has divided the investor community into two – those who are buying on dips and those who expect a further correction.
Read too: Bitcoin Weekly Forecast: BTC’s Next Breakout Could Boost It Towards $80,000
Bitcoin price drops by double digits
Bitcoin price fell into weekly imbalance extending from $59,111 to $53,120 as mentioned in previous FXStreet posts, flashing a buy signal. But investors will likely be fearful after a 15% drop in the last ten days.
The recent drop in the aforementioned imbalance has offset the build-up on the sell-side liquidity resting around the equal lows of $59,111, allowing sidelined buyers to accumulate. For a recovery rally to begin, BTC needs to form a base around $60,000 and return to the 2021 high of $69,138.
Breaking through the falling resistance level and connecting the lower highs formed since March 14 will confirm a breakout and the resumption of an uptrend. This development could propel BTC to a new all-time high (ATH) and eventually the next key psychological level of $80,000.
BTC/USDT 1-Day Chart
Read too: Week Ahead: Bitcoin Could Surprise Investors This Week
Should you buy BTC here?
Previous publications predicted a drop in imbalance as a good zone to buy BTC. So to answer the question, yes. Here are two reasons why you should pay attention to BTC at current levels.
- The risk-reward relationship is skewed. The upside of this trading idea is $80,000, an increase of approximately 35%, while the invalidation level of $50,000 is 14% away. Investors with low risk tolerance may cut back on trading if BTC fails to recover above $61,150 or turn the $53,120 support barrier into a resistance level.
- According to For veteran trader and technical analyst Peter Brandt, if Bitcoin manages to maintain current lows around US$56,900 and rise, it could indicate a continuation of the bull market.
BTC Analysis by Peter Brandt
According to Santiment’s Whale Transaction Count (WTC), transactions worth more than $100,000 increased between April 29 and May 2, showing that institutional investors could have purchased BTC amid the recent price drop.
Bitcoin WTC
The recent drop in the price of Bitcoin has seen an increase in social volume for terms such as “buy the dip” and “buy”. This index is also in line with what the WTC metric is indicating, adding credibility to the potential reversal discussed above.
All in all, the outlook for Bitcoin price appears optimistic. As mentioned above, the $50,000 invalidation level is a clear indicator of which side is in control. Should BTC turn the aforementioned key psychological level into resistance, it could trigger a 10% drop to the next critical weekly support level at $45,156.