Price: $0.38634 0.9118%
Market Cap: 56.71B 1.9068%
Volume (24h): 24.97B 0.4%
Dominance: 1.9068%
Price: $0.38634 0.9118%
Market Cap: 56.71B 1.9068%
Volume (24h): 24.97B 0.4%
Dominance: 1.9068% 1.9068%
  • Price: $0.38634 0.9118%
  • Market Cap: 56.71B 1.9068%
  • Volume (24h): 24.97B 0.4%
  • Dominance: 1.9068% 1.9068%
  • Price: $0.38634 0.9118%
Home > Information news > Time To Buy The Bitcoin Dip? Analyst Upbeat As Federal Reserve Turns Dovish

Time To Buy The Bitcoin Dip? Analyst Upbeat As Federal Reserve Turns Dovish

Release: 2024/05/04 13:46 Reading: 434

Original author:Bitcoinist

Original source:https://bitcoinist.com/?p=297892

As Bitcoin plunges, liquidating leveraged long positions in its wake, an analyst in a post on X posits that this could be a prime opportunity for accumulation, citing historical patterns of pullbacks followed by impressive recoveries.

Time to Load Up on the Bitcoin Dip?

The analyst presented a chart indicating that Bitcoin is within historical retracement ranges. Historically, when this occurs, prices tend to rebound sharply, surging higher to the delight of holders.

BTC Historical Retracements | Source: Analyst on X

Solid data supports this assessment. The analyst noted that since Bitcoin bottomed at $15,500 in 2022, there have been four distinct pullbacks, all within the -20% to -23% range. For the savvy, the trader continued, each of these downturns presented an opportunity to accumulate at a discount.

Related Reading: Shiba Inu Fees on Fire: What's Behind the 500% Surge?

Therefore, if history repeats itself, Bitcoin may be available at a discount at spot rates. At spot rates, the coin is down by around 23% from its all-time high of $73,800 in mid-March.

Bitcoin Price Trending Downward on the Daily Chart | Source: BTCUSDT on Binance, TradingView

Predicting future price movements is uncertain. However, based on the candlestick arrangement, BTC faces resistance at the $60,000 to $61,000 zone. A clear breakout above this zone could validate the analyst's forecast, potentially triggering a new leg up that could reach $74,000 in the coming weeks.

Shrinking Spot ETF Inflows, United States Federal Reserve Turns Dovish

Despite the optimism, the possibility of BTC falling below the $52,000 and $50,000 support levels cannot be dismissed. This bearish outlook is also supported by data.

For example, on May 1, spot Bitcoin exchange-traded funds (ETFs) redeemed $563.7 million worth of BTC. During the coin's rally from February to mid-March, inflows were in the hundreds of billions.

The excitement was palpable even as Grayscale liquidated GBTC, reducing BTC. The recent spike in outflows suggests that sellers are now in control and spot ETF holders are panicking and looking to exit.

Related Reading: Shiba Inu Team Unveils Two-Phase Hard Fork Strategy for Shibarium

Despite the negative sentiment and predictions of Bitcoin falling to $52,000, another analyst remains positive. Citing the United States Federal Reserve reducing Quantitative Tightening (QT) runoff from $65 billion to $45 billion, the analyst believes that Bitcoin prices could benefit from the "dovish" environment.

Notably, the central bank has indicated that it is unlikely to raise interest rates. Instead, they are considering cutting rates if supportive data shows that inflation is falling towards the 2% benchmark level. Currently, inflation remains elevated but lower than the 2021 averages.

Feature image from Canva, chart from TradingView

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