Bitcoin Price Drop : Is Now the Right Time to Invest ?
After a Bitcoin drop, investors are questioning : is it the right time to enter the market ? Let's delve into the key factors shaping BTC's movement and the investment opportunities to seize.
Market Analysis : Factors Behind Bitcoin’s Decline
Despite the recent correction, Bitcoin remains well-positioned in a long-term bullish trend. The US Consumer Price Index (CPI) data showed persistent inflation in June, tempering hopes for an imminent interest rate cut. This dynamic has weighed on Bitcoin’s price, which fell below the $120,000 mark.
Nevertheless, crypto analysts believe that Bitcoin needs to reclaim the $119,250 to $120,700 zone to confirm bullish momentum and target new highs beyond $123,000. A breakout above this level would send a strong signal to investors.
Technical Analysis : A Buying Opportunity Worth Seizing ?
Despite short-term volatility, Bitcoin’s long-term market structure suggests that each dip represents a potential buying opportunity. Experienced traders believe that levels around $115,000-$117,000 constitute an attractive entry point.
From a technical perspective, a bounce from the support zone between $113,700 and $115,300, aligned with the 200-day exponential moving average, could sustain the continuation of the bullish trend. However, a deeper correction to $112,000 cannot be ruled out in the short term.
From an on-chain perspective, BTC’s price has returned to the accumulation/Hodl zone on the MVRV Pricing bands chart. With a target of $136,000, Bitcoin is still undervalued in the medium term. However, it will need to reclaim the resistance at $119,000 to confirm this outlook.
Furthermore, short-term holders have panic-sold in the last 24 hours, reinforcing the scenario of an imminent rebound.
Despite recent fluctuations, Bitcoin remains well-positioned in a broader bullish trend. Savvy investors see this as an accumulation opportunity, betting on the long-term growth potential of the leading cryptocurrency.
Although investing in Bitcoin carries risks, both technical and fundamental perspectives suggest that current dips offer an interesting entry point for long-term investors.
Charles Ledoux
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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