Bitcoin enthusiasts witnessed a thrilling rollercoaster as the cryptocurrency surged to an all-time high of $69,324 on March 5. However, the excitement took a sharp turn when prices dropped by 10.2%, hitting $59,323, causing the broader cryptocurrency market to lose over $150 billion in just 24 hours.
Here’s some more information for you to decide your next portfolio moves.
A Healthy Pause… Or Not?
Some analysts consider the recent correction a breather, while others predict a more significant dip of over 55%. Esteemed crypto analyst Ali Martinez warns investors about cautionary signs flashing on Bitcoin’s daily chart.
Martinez points to the TD Sequential indicator, known for its accuracy, recently signaling a sell. In January, a buy signal led to a 34% surge, while a mid-February sell resulted in a 4.44% downturn.
Additionally, the Bitcoin MVRV indicator, at 19.57%, raises concerns, as historical patterns suggest significant price plunges when crossing the 18% threshold since February 2021.
Also Read: Why did the Crypto Market Crash? What Next For Bitcoin and Altcoin?
Rekt Capital’s Perspective
Technical analyst John Bollinger cautions about profit-taking at new highs, while Rekt Capital assures that the retracement is a temporary setback, not signaling the end of the bull market.
Rekt anticipates a notable Bitcoin pullback. He highlights that this retracement is not the end of the bull market; instead, it marks a temporary setback before Bitcoin resumes its upward trajectory.
Market Impact and Investor Sentiments
As Bitcoin surpassed $69,000, poorly positioned traders faced losses, with over $1.05 billion in liquidated leveraged positions, according to Coinglass data. Long liquidations contributed $846 million, with BTC’s long liquidations totaling $309.33 million. Despite this turbulence, analysts see a strategic buying opportunity emerging after the dip, especially with the impending halving.
Amidst the market’s rollercoaster, sentiment for buying the dip has reached peak levels. Historically, such moments have proven opportune for capitalizing on buying opportunities. As of now, Bitcoin is trading at $66,204, reflecting a 1.3% drop in the last 24 hours.
Read More: Bitcoin Price Hits ATH; These altcoins Might Hit ATH Next!
Investors are keenly watching, hoping for another climb soon.