Bitcoin dives below $60k: Is it time to buy the dip?

Bitcoin is below the average purchase price for short-term holders. At the time of writing this article, BTC was rallying at $57,855.89. While there has been a slight 0.71% increase in the last 24 hours, analysts speculate that more selling pressure and a higher fall are on the way.

The price of Bitcoin is expected to go as low as $52,000. It could alternatively stay around $55,000. Nevertheless, it is below the $60,000 support level, and that is something to consider. Long-term holders are barely making a move—if anything, they are potentially aiming to buy more tokens.

There is no official statement about it, but discussions around buying the dip are nothing new. Many traders did buy the token when it was at $20,000 and are now sitting on a high return. BTC’s price previously depended on the Spot Bitcoin ETF, followed by Bitcoin Halving.

The Spot Bitcoin ETF saw a massive uptick in BTC value. The token even reached a new ATH of $73,000 after eleven applications for the Spot Bitcoin ETF were approved. Next, it was Bitcoin Halving. The most awaited event was welcomed by analysts with dubious sentiments. Despite its historical association with causing a surge, analysts saw the 4th iteration of the event as a way to soften the decline rather than bringing a jump.

The fact that a price increase won’t occur doesn’t change that, as BTC projection is still on track to reach the $100,000 milestone by the end of this year. It could take a while before an upward trajectory makes a comeback.

A lot depends on the decision of the Federal Reserve to make interest rate cuts. Bringing the rate down will pave the way for crypto and equity markets to bank a higher inflow. Specifically for crypto, it means that investors will be able to allocate a larger portion of their portfolio to a risky asset. The decision is pending, but Jerome Powell, the Chair of the Federal Reserve, has hinted that a rate cut is not on the table. Meaning there is a chance that relevant authorities will not touch rates at all, keeping them stagnant.

Plus, there are fears that the US market will go through stagflation. There are indications for slower growth and sticky inflation, giving air to the emergence of an unfavorable situation in the US.

BTC is not the only crypto that has suffered the blow. Ether is down by 3.85% in the last 7 days and 10.95% in the last 30 days. However, it has risen by 2.61% in the last 24 hours. ETH is trading below the crucial psychological level of $3,000, joining the US dollar at $2,970.91 at press time.

This could be a good moment to purchase the drop; nevertheless, traders should conduct their own research before investing in cryptocurrency.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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