Is It Time To Buy The Dip? Bitcoin Price Analysis
Bitcoin’s price has been trading between $9,900 and $10,200 since plunging from a recent high of $12,025 last week.
The support at $9,900 has been strong both times it was tested, and this led some traders to believe a short-term bull scenario is more likely.
Of course, a big drop is nothing new to the leading cryptocurrency, and the 12% drop last week is nothing compared to the severe drop back in March.
But what is the outlook for Bitcoin? And is it time to buy the dip?
Bitcoin Technical Analysis
At the time of writing, Bitcoin is trading at $10,356, and the upswing has occurred after a subtle double-bottom pattern in the hourly range.
The initial bottom was formed during BTC’s breakdown to levels under $10,000 where it found support at $9,900 on September 5, whereas the second bottom was formed a couple of days later.
The recovery from the double bottom doesn’t appear to have much momentum, however, as resistance has been formed at $10,400 and $10,600.
But if we can break these resistance levels there’s no reason to doubt we would break $11,000.
If Bitcoin fails to hold support above $9,900 we could see further significant drops, however.
Popular analyst, Josh Olszewicz, says if Bitcoin doesn’t hold these levels and if we break the 200-day moving average, then we are likely to see a drop to $8,100.
Long Term Trend Looking Bullish
Trader il Capo Of Crypto claims the long term trend is mirroring that of Nasdaq in the early 2010s, in its early days of the mega bull run.
The analyst believes as long as we hold these prices then Bitcoin is on a similar trajectory to Nasdaq in its decade-long bull run.
And if Bitcoin can hold the bearish pressure and remain above $9,900, il Capo Of Crypto belives we could go on a multi-month bull run and see new all-time highs.
Several Macro Traders Bullish on Long-Term Bitcoin Price
Many other macro investors are bullish on Bitcoin. Mike McGlone, a senior commodity analyst at Bloomberg Intelligence said,
‘Bitcoin is mirroring the 2016 return to its previous peak. That was the last time supply was halved, and the third year after a significant peak. Our graphic depicts Bitcoin marking time for a third year following the parabolic 2017 rally… Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year if it follows 2016’s trend.’
He’s not the only one. Raoul Pal recently said ‘a perfect storm had brewed for Bitcoin’. The Real Vision CEO said macro and Bitcoin technical analysis was all coming together perfectly.
With the global economy in a roadblock, and governments doing their best to devalue their currencies, non-correlating assets are looking much more attractive to professional investors, claims Pal.
Whereas, Devere Group CEO, Nigel Green believes Bitcoin will overthrow gold and become the ultimate safe haven for investors hedging against inflation.
Green said, ‘Bitcoin, which shares its key characteristics of being a store of value and scarcity, could potentially in the future knock gold from its long-held top spot as the world becomes driven by the tech revolution.’
Is It Time To Buy The Dip?
The short-term price is never easy to predict, and there are bulls and bears with good cases.
That said, we are in a bull cycle, and these drops rarely drop further in bull cycles, so a drop under the 200 DMA is unlikely.
And buying the dip has rarely not paid off for any long-term Bitcoin hodler.
Raoul Pal, Nigel Green, and Mike McGlone are all revered traders, and they’re all super bullish on the outlook for Bitcoin.
Is it time to buy the dip? In my opinion, while we’re under tin the early days of this bull cycle it’s always time to buy the dip.
Author: Tommy Limpitlaw