The massive rise of Bitcoin from under $70,000 to over $108,000 within a month and a half after Donald Trump’s presidential election win left some investors out of the loop. However, due to the volatile nature of BTC, substantial corrections occur regularly, providing opportunities for latecomers to join in.
Recently, Bitcoin’s value dropped by double digits, leading some to believe they should “buy the dip.” History suggests that this could send BTC soaring once again. According to analytics platform Santiment, the last time discussions about buying dips were prevalent was in early August when Bitcoin’s price fell below $50,000.
A few days later, it had risen by over 25% to reach beyond $62,000. If history repeats itself and the current situation follows suit, despite Bitcoin’s much larger market cap, it could recover from its recent retracement and potentially reach a new all-time high above $120,000. While some believe that Bitcoin’s recent dip may have bottomed out, other on-chain and technical metrics suggest otherwise.
For instance, IntoTheBlock pointed out that a significant demand zone has formed just under $100k, with over 1.45 million BTC being accumulated there at an average price of $97,500. This makes this area an important potential support zone. However, with the recent breakdown of this support level, there is a risk of further retracement.
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