Bitcoin Records Massive Dip; Is It a Time to Buy the Dip?
Bitcoin is one of the first decentralized blockchain-based cryptocurrencies in the world. However, after its popularity now, it has been facing an issue with scalability and low transaction rate. It works as a peer-to-peer global payment transfer protocol.
Many analysts question the fundamentals of Bitcoin because it works on proof of work consensus, consuming more energy for mining which is not eco-friendly. Ethereum also has the same issue, but it will upgrade to Ethereum 2.0 later this year.
Ethereum will switch from proof of work to proof of stake consensus, but Bitcoin does not announce anything like this. However, there is no comprehensive answer to these scalability and transaction rate-related issues, which is why the revenue or ROI of Bitcoin will decrease.
Besides that, retail investors are afraid after the Terra Luna fiasco. Now big investors are accumulating more coins for the long term, and we think Bitcoin has a bright future instead of these drawbacks.
The price of Bitcoin has dropped significantly in the last four days. It is tough to predict the next support level, but traders should read this price analysis and explore our detailed Bitcoin forecast to get a long-term and short-term view before investing.
While writing this analysis, the price of BTC is trading around $25K. Indeed, $28K was a strong support level for the chart, but it has broken the level, and now it is falling towards the next support of $19K. On the daily chart, most of the technical indicators are bearish, RSI is in the oversold zone, and MACD is bearish.
Today’s candlestick is outside of the lower Bollinger Band. Overall, the sentiment is weak in the short term.
On the weekly chart, the situation is very similar. Among the last 12 weekly candles, 11 candles are red. MACD and RSI are bearish; candlesticks may break the lower Bollinger Band soon.
That means, if you believe in the fundamentals of Bitcoin, you should accumulate more coins for the long term.
We think that the Bitcoin price will not break the $10K level in the long run, so the long-term thinkers should buy it for the next five years.