Bitcoin has gained 6% in the past 24 hours, falling to $92,368 as the crypto market fell 7% today. BTC maintains gains of around 0.5% on the week, while still gaining an impressive 37% over the past month and 144% over the past year.
With medium- to long-term bullish momentum, the drop over the past 24 hours offers buyers a great opportunity to buy Bitcoin at a relative discount, before the coin resumes its efforts to break the $100,000 barrier.
And given the overwhelming bullish trend of the market, it is only a matter of time before the market reaches this target and the further rise in 2025 could be a very bullish year.
Bitcoin Drops to $92.8K, Crypto Market Cap Drops 6%. Is It Time to Buy on Dips?
Looking at the one-hour chart of BTC, it can be seen that the price is close to bottoming out, suggesting that this is indeed a good time to buy on dips.
The coin's relative strength index (purple) fell below 30 overnight and has now started to show signs of recovery.
Perhaps more notable is that BTC's 30-period moving average (orange) is about to form a 'death cross' with the 200-period moving average (blue).
This usually indicates further decline, but it also reinforces the view that the coin is bottoming.
Therefore, we could see Bitcoin drop to $92,000 before a more sustainable bullish recovery.
If we look at the long-term 1-day chart of BTC (below), we see that it is actually still in the middle of a bullish phase, which is indicated by the high RSI (and 30-day moving average).
This reinforces the claim that yesterday's drop was just a temporary correction amid a longer-term expansion.
Yes, the past day has seen some large BTC transfers to exchanges (e.g. Kraken and Coinbase), but we also continue to see some large purchases from whales.
On a more fundamental level, it could also be argued that we have yet to see the full impact of a second Trump presidency on Bitcoin prices.
While traders have pushed the coin higher on the expectation that the incoming Trump administration will do good things for cryptocurrencies, the impact could be even stronger once we see some concrete policy announcements and introductions.
Some experts even expect Trump to allow US banks to hold BTC on their balance sheets, which could be extremely important for the cryptocurrency in the coming weeks. Based on these factors, the price could hit $100,000 by the end of the month, before rising to $110,000 by 2025.