Bitcoin (BTC) is expected to drop to $ 32,500 in the short term after some key support levels dropped to zero on Friday.
BTC / USD lows not hit since early March on Friday as analysts align their forecasts – and buy orders – in the latest Bitcoin price correction.
Brandt plans to buy Bitcoin for $ 32,501
BTC pullbacks tend to scare new investors, while old hands seem to battle each other over who can play the coolest role when the numbers go down.
However, when the largest cryptocurrency fell $ 53,000 and then $ 50,000, there were short-term signs of bear market.
For veteran trader Peter Brandt, who has been known for citing various BTC price phenomena in recent years, there was still a lot more room to buy the dip. So much so that he revealed that he had planned a buy order for only $ 32,501.
I placed orders overnight to buy $ BTC for $ 32,501
– Peter Brandt (@PeterLBrandt), April 23, 2021
Like other popular analysts, however, Brandt is anything but bearish on Bitcoin in the long run. Together with him, the popular Twitter account Dilution-Proof predicted the lower price limit. He argued that $ 46,000 for BTC / USD would be challenging.
The basis for the support is actually multiple price points, the account explained. Offers from investors and high volume whales, as well as a Fibonacci technical level, suggest that bears would struggle to force the market much lower.
“I have also observed a high volume of purchases in the chain between $ 47 and $ 49,000 on the blockchain, which I expect will be a very strong support if we even get to that price level,” agreed Philip Swift of the trading suite DecenTrader published in a new analysis on Friday.
“In addition, we continue to see a sharp increase in the number of users on the Bitcoin blockchain, which is also optimistic. Although there has been a lot of fear on social media this week, I don’t think there is a need to panic or be overly concerned about the price of Bitcoin right now. “
In the 24 hours leading up to Friday, more BTC was deposited on the exchanges than it has ever been since the cross-asset crash in March 2020, Glassnode data shows.
For Twitter analyst colleague Rekt Capital, the retracement has now become a textbook event that has shaped every Bitcoin bull market.
The beginning of the Q2 correction, which occurs roughly 80 days after the end of the Q1 $ 42,000 correction, mimics what happened to Bitcoin during its 2017 bull run.
Altcoins are suffering, but an injection of cash is close at hand
While bitcoin lingers, altcoins see another red sea after a widespread sell-off – but not for long.
This is the conclusion reached by Philip Swift, who singled out Ether (ETH) after the largest altcoin by market capitalization hit new all-time highs this week. In general, Altcoins are ripe for a cash inflow from investors who consider Bitcoin to be “too expensive”.
“Given the influx of new money into the market and the fact that new entrants find Bitcoin to be ‘too expensive’, I expect money to flow into altcoins,” he added.
“That would cause Bitcoin dominance to decline for a period of time as certain alts outperform Bitcoin.”
Bitcoin lost its controlling stake in crypto market cap on Thursday, falling into the 40% to 50% zone for the first time since 2018.