VirtualBacon shared insights regarding the current situation of Bitcoin (BTC), noting that while the cryptocurrency is experiencing a sharp correction, there is no reason to panic.
The key point raised is that Bitcoin remains above the critical Bull Market Support Band, which lies between $61K and $62.5K on the weekly timeframe.
The analyst emphasized the importance of a potential weekly close above $58K, suggesting that this could indicate a healthy correction before a subsequent upward movement. Conversely, a break below $58K would necessitate a reevaluation of strategy.
Bitcoin Correction: Is it Time to Buy the Dip? #Bitcoin is experiencing a sharp correction, but I’m not panicking. Why? Because we’re still above the critical Bull Market Support Band. Let's break down key support levels, where I expect Bitcoin to bounce, and the best…
— VirtualBacon (@VirtualBacon0x) October 3, 2024
Two primary buy zones were identified by the analyst: $62.5K and the lower range between $58.8K and $60K. These levels align with previous highs, liquidity sweeps, and the 200-Day EMA, which is considered a critical long-term support level.
Patience is advised, with the analyst waiting for two consecutive weekly closes above $63K to confirm a robust bounce.
The Bull Market Support Band serves as a crucial level to monitor. The 200-Day EMA, currently around $60K on the daily timeframe, has acted as both support and resistance over the past six months. The analyst noted that a bounce from $60K would signify strength, whereas a daily close below $58K could indicate a bearish trend reversal.
In terms of buying targets during this dip, the analyst is accumulating in the $58K-$60K range, viewing it as a high-risk-to-reward zone. However, a close below $57K would raise concerns, prompting a reassessment of positions.
The expectation is that as long as Bitcoin holds above $58K, it could establish a higher low, setting the stage for a new high above $66K.
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Macro factors are also crucial, with the September jobs report set to be released soon. The analyst pointed out that different unemployment rates could have varying implications for the market, with 4.4% as a cautionary threshold. A rate exceeding 4.5% could signal trouble for the entire market, not just Bitcoin.
Altcoin to Watch During the Dip
Some altcoins exhibit remarkable strength during this dip. The analyst categorizes their portfolio into five key sectors: AI, Gaming, Meme Coins, RWAs, and Layer 1s. Using resources like TradingView’s Coin Screener and CoinGecko’s Category Tracker, the analyst identified strong performers in the previous month, particularly in the Meme Coins, Gaming, and Layer 1 sectors.
AI coins remain resilient, with high-quality projects such as Fetch.ai, Render Network, and SingularityNET showing positive gains. The analyst recommends dip-buying opportunities in this sector.
Meme coins like Doge, Shiba Inu, Pepe, and Wojak are also holding up well, with a suggestion to focus on established names to mitigate volatility risks.
On the other hand, gaming altcoins are facing struggles. Projects such as Sandbox, Axie Infinity, and Gala have not demonstrated the same strength, and the analyst advises patience, suggesting that only a few gaming coins are currently showing true potential.
A standout performer in the gaming sector is SuperVerse, which has maintained its uptrend despite market corrections. The analyst’s buy range for this coin is between $0.78 and $0.92, with a stop-loss set below $0.58. Prime is another gaming coin showing momentum, but it is considered riskier due to its trading position. A dip to $7-$8 could provide a better entry point.
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XBorg, a low-cap gaming play, is also on the analyst’s radar, targeting $0.63 as a short-term stop-loss. The analyst believes that all tokens are 100% unlocked, reducing early selling pressure and making it a more attractive long-term hold compared to other small caps.
Regarding coins to avoid, the analyst expressed caution towards SUI, citing an unfavorable risk-to-reward ratio. The next support level is at $0.76, making it too risky for entry. In contrast, Solana is viewed more favorably, with strong support at $125. The analyst plans to build a position from this level down to $125 with a stop-loss at $100.
Fantom is highlighted as a Layer 1 coin to watch closely, particularly in light of its upcoming Sonic Chain release, which could position it as a competitive player in the space. The analyst’s target entry for Fantom is between $0.58 and $0.60, with a stop-loss at the previous low.
Additionally, Axelar is mentioned as a promising project pivoting toward RWA infrastructure, with partnerships with major financial institutions. The target entry for Axelar is set at $0.47, with a stop-loss below $0.42, as the analyst anticipates significant developments in 2025.
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The post Is This a Good Time to Buy Bitcoin (BTC) Dip? Watch FTM, SOL, DOGE, and These Altcoins for Strong Recoveries appeared first on CaptainAltcoin.
