Bitcoin News: What’s Next After Market Dip? Key Levels to Watch!
The crypto market dipped 0.98% in the last 24 hours, bringing the global market cap to $3.22 trillion. With $167.82 billion in trading volume, is BTC set to recover? This drop has been largely attributed to a bearish sentiment, with Bitcoin’s price hovering around the $98,000 mark. So, is this the right time to invest in Bitcoin?
Why Are Retail Investors Holding Back on Bitcoin?
On-chain data from @santimentfeed reveals that retail investors are not showing strong buying interest in Bitcoin at the moment. Specifically, the number of addresses holding between 0 and 1 Bitcoin has been steadily decreasing. This decline suggests that smaller holders are not rushing to enter the market, reflecting an overall sentiment of caution.
Will Bitcoin Hold Its Key Support Level?
Crypto Research Analyst Ali highlights that Bitcoin has successfully regained a crucial support zone between $96,475 and $99,360. As long as this level holds strong, bullish momentum may continue, especially if Bitcoin manages to break through the key resistance zone between $102,350 and $103,900. However, the market remains in a consolidation phase, and a decisive breakout above or below this range will likely determine the next trend direction.
Increased Long-to-Short Ratio Signaling a Recovery
In a positive development, Bitcoin’s Long-to-Short Ratio has seen a strong rebound in the past 24 hours. According to CoinGlass data, the ratio has climbed from 0.9643 to 0.9833, signaling a notable recovery from the February 1 peak of 0.9001. This shift suggests that market participants are regaining confidence, although the trend is still in flux.
Bitcoin ETFs Show Positive Inflows
For the first time this month, all Bitcoin ETFs have either held steady or seen positive inflows. BlackRock’s IBIT ETF led the pack with a $249 million inflow, while Ark’s ARKB ETF followed with $56.11 million. This shift in investor behavior toward Bitcoin ETFs indicates that institutional investors might still have confidence in Bitcoin, providing some stability amid the broader market uncertainty.
Bitcoin's Consolidation Range: Is a Breakout Imminent?
According to Crypto Research Analyst Ali, Bitcoin is currently trading within a consolidation range between $90,900 and $108,500. Until Bitcoin experiences a decisive breakout from this range, the overall trend remains uncertain. This consolidation phase suggests that the market is waiting for a clear direction, with traders closely monitoring key support and resistance levels.
Despite these signs of recovery, Bitcoin price has experienced a drop of 1.21% in the last 24 hours, with a trading volume of $64.55 billion. Over the past seven days, Bitcoin has lost 4.52%, and in the last 30 days, the cryptocurrency has plunged by around 1.00%. Bitcoin’s market cap has fallen to $1.93 trillion, maintaining a market dominance of 61.15%.
Moving Averages and Bearish Sentiment
Bitcoin’s price struggles to break above the 20-day and 50-day moving averages, a sign of bearish momentum. This technical pattern further suggests a prevailing bearish sentiment among traders. The RSI remains neutral, signaling uncertainty, while the average trendline shows a negative trend. These signals point to the possibility of continued downward pressure on Bitcoin’s price this week.
Conclusion: Is Now a Good Time to Invest in Bitcoin?
Given the ongoing consolidation phase, the bearish sentiment, and the uncertainty in the market, it might not be the best time to invest in Bitcoin if you're seeking short-term gains. However, Bitcoin's historical resilience and the potential for a rebound in the long term could make it an appealing investment for those willing to weather the current volatility. What’s your BTC strategy? Are you buying the dip or waiting for a breakout?
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