The post Bitcoin, Altcoins Plunge By 5-20%: Time to Buy the Dip? Here’s What the Analyst Says! appeared first on Coinpedia Fintech News
The crypto market has experienced a severe drop, with altcoins suffering the most significant losses. Bitcoin recently pulled back around 5%, and smaller-cap altcoins dropped sharply by 10- 20%. What caused this? And more importantly, is it the right time to buy the dip? According to renowned crypto analyst Michael van de Poppe, there’s one strategy that could help you navigate the crypto market in the coming weeks: “buy the dip.”
Bitcoin Drop By 5%
Bitcoin recently surged to nearly $93,000 and has seen a slight pullback of 5.1% over the past few days. Currently, Bitcoin is down around 2.7%, and traders are questioning whether this is just a minor correction or the beginning of a deeper downturn.
This pullback aligns with patterns observed in past bull markets where Bitcoin hits resistance levels and retreats. For instance, Bitcoin recently encountered a 1.618 Fibonacci level, triggering a cool-off as traders expected resistance around that point.
Moreover, the Bitcoin Fear and Greed Index has entered extreme greed territory at 80, which often signals that a pullback may be due.
However, Warren Buffett once said, “Being fearful when others are greedy & being greedy when others are fearful.”
Expect Altcoin Breakouts
Van de Poppe notes that altcoins might experience significant gains soon, with many potentially breaking out after quick dips. His recommendation is to take advantage of price drops of 20-50% in popular altcoins, believing these could offer prime buying opportunities.
The general plan for the upcoming period is to:– Buy the Dip.It's as easy as it is. #Altcoins are likely breaking out left and right in the upcoming weeks and you'd want to maximize that through buying those 20-50% dips.
— Michaël van de Poppe (@CryptoMichNL) November 14, 2024
Historically, altcoins often witness sharp rebounds after corrections, particularly in bullish market phases. For more stability, large-cap altcoins tend to perform better, with less severe downturns and bigger upside potential.
Buying the Dip” Can Pay Off
In the past “buy the dip” approach has proven profitable for many in the crypto market. For example, in recent months, the quick recovery of major assets after price declines has shown the potential of this approach.
While Bitcoin often captures the spotlight, altcoins tend to experience even more dramatic percentage increases, especially during bullish cycles.
