- Bitcoin (BTC) seems to have wiped out its pre-fourth halving gains as it now trades at $57,000.
- The Crypto Fear & Greed Index indicates the element of “Fear” heavily driving market sentiments.
- A popular crypto trader and analyst on X suggests it may be an ideal time to buy the dip based on several bullish patterns that emerged in his charts.
Price of Bitcoin Now
Bitcoin price has tanked since April despite several important events happening in its ecosystem. The world’s largest cryptocurrency by market cap continues its slide today as it sheds nearly 5% of its value in the 24-hour chart to around $57,200 as of this writing at 5:00 AM UTC this Thursday, May 2.
During the said period, Bitcoin’s 19.69 million circulating supply decreased its value to $1.13 billion. Meanwhile, it displayed a 30% increase in trading volume as $49.49 billion worth of the crypto asset moved between addresses while prices pivoted between a $56,555.29 low and a $60,245.85 high.
The prime digital asset also showed an alarming slide in the seven-day and one-month frames with a drop of over 10% and 14%, respectively. On the other hand, it’s still 105% up in the one-year range but is now a far cry from its all-time high of $73,750.07 achieved on March 14 this year.
Fear Dominates the Market
As a result of Bitcoin’s tanking prices, the crypto community appears to be treading carefully in their trades with some exiting their positions as a knee-jerk reaction to save their funds. This sentiment is very evident in today’s Crypto Fear & Greed Index as its dial turned to a 43 “Fear” rating from yesterday’s 54 “Neutral” score, last week’s 72 “Greed” indicator, and last month’s 79 “Extreme Greed” mark.
Could Be an Ideal Time to Buy the Dip
Based on the mentioned metric, this may be the right time for Bitcoin investors to buy the dip. It’s particularly advisable if they bought from the top in the past few months in order to lower their average purchase price (cost averaging).
At a time when Bitcoin is enjoying massive institutional adoption, it may not be long until whales like BlackRock or maximalists like MicroStrategy will capitalize on the opportunity. And by the time the news spreads, many would most probably be wishing they had brought earlier.
The latest technical take of Ali Martinez, a.k.a Ali on X, on the market further reinforces the aforementioned bullish scenario. According to the popular trader and analyst, Bitcoin’s present behavior mirrors the past three instances in the last two years wherein its 30-day MVRV dropped by 9%. The aftermath of these events has consistently led to massive rallies all the way to 64%, 63%, and 99% gains, respectively.
Previously, he also downplayed the significance of the $56,000 and $51,000 supports of Bitcoin as it struggled within a $62,000 resistance.
Final Thoughts
While the scenarios presented here suggest a bullish scenario going forward, these should not be construed as solid financial advice. With the complexities surrounding the crypto and financial markets, including their potential to be influenced by both foreseen and unforeseen circumstances in the economic and socio-political spheres, all these could be negated in a flash. Therefore, always exercise due diligence before taking the things discussed here into consideration.