Just before the last day’s close, the Bitcoin (BTC) price marked a new high at $69,170, piercing through the previous ATH at $68,789.63. This was the ultimate push by the bulls to surpass $70,000, but the bears managed to restrict the rally well before. However, the subsequent plunge was not surprising, but rather anticipated, as many believed that panic sellers who fell victim to the FUD trap would flee in no time.
While the current trade set-up appears to be quite bullish as the price has recovered to a large extent, the larger perspective remains under bearish threat. It is worth noting that, despite immense bullish efforts, the BTC price is unable to soar above the ‘key resistance’. However, it resembles the trade set-up that formed in 2020 and with this, the possibility of the price undergoing one last dip below $60,000 emerges.
The current trade set-up resembles the 2020-like run where Bitcoin saw an ATH break followed by a 15% dip. This forced the open interest to dump as the more than 900 million late-longs were liquidated. Further, the funding rates were reset to neutral, which led to a continued price drop. Hence, if the BTC price follows the previous trade setup, then it may witness another dump, probably to $58,000, as predicted by a popular analyst, Emperor.
Regardless of this, Bitcoin is still believed to have set up a parabolic move to top out at $100K or more in the current cycle. The BTC price rebounded back in 2020 and led a marvellous bull run to reach $68,789 from levels around $17,500. Now that a drop is expected to the levels around $58,000, the upcoming rally may elevate the levels much beyond $100K in the next 6 to 8 months. Hence, the star crypto could offer an ultimate ‘buy the dip’ opportunity before flying high towards the new ATH.
Credit: Source link