Bitcoin Price Dips Below $58,000: Top Analyst Says ‘Prime Buying Opportunity’
The post Bitcoin Price Dips Below $58,000: Top Analyst Says ‘Prime Buying Opportunity’ appeared first on Coinpedia Fintech News
Popular analyst Rekt Capital took to his latest analysis and opened up about Bitcoin’s recent price crash. Bitcoin has once again dipped below $60k and is now retesting the $58k levels. The analyst explained this crash in context with the P Cycle top indicator.
Historically, during bullish periods like 2016-2017, Bitcoin’s price respected the 111-day P Cycle moving average as a support level, maintaining this until it peaked and the average turned into resistance. In bear markets, this average typically acts as a barrier, while in bull markets, it provides crucial support with only occasional deviations.
Now, fast forward to 2023. Bitcoin has been holding this P Cycle moving average well, despite some recent fluctuations. The current downside deviation aligns with past trends where such periods of downturn in bull markets have often signaled buying opportunities and significant returns in the months that follow.
Looking back at previous halving years, like 2020, there were notable deviations below the P Cycle moving average due to external factors like the COVID-19 crash. Despite this, the average remained a key support level, leading to a rally to new all-time highs before eventually flipping to resistance and marking bear market lows.
Market PredictionsBased on historical data, this period of downside deviation could represent a prime buying opportunity. Comparing the current market conditions to those of past cycles, such as the pre-halving year of 2019, shows that while deviations and resistance at certain points are common, they are often part of a broader bullish trend.
The analyst wrote on X, “Fun fact: Bitcoin has filled every single CME Gap over the past 6 months. Bitcoin has just formed a new one in the $60500-$61500 area (orange circle.”
At the time of writing, Bitcoin is down by more than six percent and is trading at $58,066 levels.