#Write2earn Navigating #Bitcoin 's Current Dip: Will the Market Rebound or Extend the Pullback? #marketanalysis. #BullorBear. #BTC......... $BTC
Monday witnessed a significant dip of up to 4.5% in Bitcoin's price before it managed to regain some ground. However, Tuesday has proven to be even more challenging. The question now is whether Bitcoin will rebound from its current level, or if investors will be given a more favorable chance to buy in.
Is More Decline Ahead?
For the second consecutive day, the cryptocurrency market is showing red. Following a 2.3% decline on Monday, Tuesday has seen a further drop of 4.4%. The big question looms: is this the extent of the pullback, or are we in for more downside?
CME Gap Still Unfilled
A glance at the daily chart reveals that Bitcoin's recent dip only brought it down to the main trend line, which has been holding since early February. While a bounce could occur here, nothing is certain yet.
One potential scenario is the filling of a CME gap around $64,100, coinciding with a strong support level. It's possible that the price could dip through the trend line to reach this level and close the gap.
Bull Markets Mean Upside
For traders and investors feeling hesitant, it's important to remember that Bitcoin is in a bull market. Despite inevitable corrections, the overall trajectory is upward. Throughout this bull market, corrections have typically stayed under 22%, with the current one sitting around 17.5%. A true trend reversal would require the price to drop below $61,000.
Resetting Leverage
A silver lining emerges as funding rates and open interest have reset due to recent price pullbacks. Leverage traders, who often contribute to market volatility, have suffered losses totaling approximately $422 million. This reset could pave the way for a swift bounce-back.
As of now, Bitcoin's price seems poised to potentially break below the trend line, indicating a possible journey towards closing the CME gap. An opportune moment for entry or dip-buying could be on the horizon.
