The sell-off in Bitcoin, according to traders, was necessary, and dips will probably be seen as opportunities to buy.
On March 5, just after Wall Street opened, Bitcoin reached a new all-time high of $69,324. It then had a dramatic 9.75% correction to $59,323, which analysts have hailed as a positive step before to “healthy consolidation.”
Bitcoin was trading 9% below its new all-time high of $69,170, according to data from TradingView.
Even if Bitcoin has gained 12% in the last seven days, investors are still unsure of the future direction of the price after the first cryptocurrency’s flash fall.
The “FOMO stage” was dubbed by market expert Aksel Kibar after he released a graphic indicating that Bitcoin had surpassed $69,000.
Kibar saw that Bitcoin was trading between $65,000 and $68,000 on March 4, 2021, with a target price of roughly $69,000 in November 2021.
He made this observation in a post on X on March 4. He cautioned investors against succumbing to the fear of losing out at that point.
He declared,
“$BTCUSD This isn’t a breakout to an all-time signal, in my opinion. This part of the move shouldn’t be FOMO’d.
Alex Thorn, head of research at Galaxy Research, concentrated on the past price movements of Bitcoin, especially in 2020 when it saw a brief decline following new all-time highs.
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According to Thorn, if past events are any indication, Bitcoin will probably decline by “11.3% lower over 15 days before definitively breaking ATH” once more in the coming weeks.
The mid-to-low $50,000s represent a potential retracement where a probable decline might take place. A chart that showed Bitcoin moving in a broad ascending parallel channel with short-term support below $55,000 offered by the pattern’s middle border was shared by Peter Brandt on March 2.
“A dip below 55,000 would, in my opinion, present a buying opportunity, though I do not anticipate such a dip.”
Shortly before the price drop, independent analyst Ali saw that the TD Sequential indicator had delivered a sell signal on the daily chart, alerting traders to pay “close attention.”
“This indicator has demonstrated a strong ability to predict $BTC trends since the beginning of the year. It has previously issued a buy signal in early January, which preceded a 34% surge, and a sell signal in mid-February, which followed a 4.44% downturn.”
Technical price expert John Bollinger called the March 5 BTC price retrace “a bit much,” despite the fact that other traders had anticipated a more substantial decline in a pre-halving retrace.
He declared,
“It is normal for there to be profit-taking at new highs, but this looks excessive. Is it anything else, leverage, or weak hands? Besides, a bad day doesn’t equal a great one.”
However, Bollinger continued, “a failed rally attempt would be ugly.”
According to market data, traders were not well-positioned for the most recent run above $69,000.
Over $1.17 billion worth of leveraged positions were liquidated in the cryptocurrency market in the last day, with $846 million of those liquidations being long bets, according to Coinglass statistics. $236.33 million was liquidated throughout the course of BTC.
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