Analyst Unveils Essential Bitcoin Price Levels to Monitor: Is it the Optimal Moment to Purchase Bitcoin?
Crypto analyst Blockchainedbb is cautioning against buying Bitcoin in the current weak market conditions, citing the potential for further price drops. Instead, the analyst suggests waiting for Bitcoin to reach $68,000 before considering buying, with a target price of $75,000. While not predicting a full bear market, the analyst warns of potential downside due to geopolitical risks and correlation with other markets.
Blockchainedbb, a renowned crypto analyst, is raising the alarm in recent posts, advising crypto enthusiasts to exercise caution before investing in Bitcoin at its current peak. Providing a detailed analysis of the market dynamics, Blockchainedbb sheds light on the hidden risks and proposes a strategic entry point for BTC enthusiasts.
The Current Market Situation
While Bitcoin remains relatively stable, altcoins are experiencing significant drops, with some witnessing declines of up to 60% from their recent highs. This has resulted in many portfolios suffering losses, leaving stakeholders with the choice of cutting their losses or doubling down.
However, the $55,000 mark does not offer strong support for Bitcoin. Warning signs in the form of “fair value gaps” on the charts suggest that Bitcoin may not necessarily rebound to fill these gaps. Ignoring these warnings could lead to further declines.
When to Start Buying Bitcoin?
Blockchainedbb suggests that for a significant shift in the market direction, Bitcoin needs to break above $68,000. Only then should investors consider buying with a target price of $75,000. Any investment made before this crucial point is akin to “trying to catch a falling knife,” as the market could swing in any direction.
If Bitcoin fails to respect the monthly fair value gap on the chart, it could drop to $42,000 before eventually reaching $75,000. This poses significant risks for altcoins, with some potentially facing further drops of 40-60%.
Hope for a Revival?
Adding to the uncertainty, unresolved geopolitical tensions, particularly in the Middle East, could worsen the situation and lead to further downturns. Additionally, since crypto markets operate on weekends, Bitcoin is susceptible to movements in gold, oil, or the S&P 500 when other markets are closed.
Despite the gloomy outlook, Blockchainedbb sees hope on the horizon. With an election year approaching, government interventions aimed at stimulating the economy could spark a market rebound starting in June.
So, When Should You Dive In?
In parting advice, Blockchainedbb warns against hastily averaging down until Bitcoin shows a clear shift in sentiment, indicated by a daily close above $68,000. Investors should carefully assess their financial situation and be prepared to wait for recovering losses or making gains if Bitcoin dips below the $53,000 support level.
Investors should also prepare for potential volatility, both downside and upside, in the coming weeks.