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Bitcoin price is considering a potential reversal after dipping into the weekly imbalance zone that stretches from $59,111 to $53,120. On-chain and social statistics predict a potential involvement of whales buying the dips. A successful recovery rally could send BTC past the current high of $73,949 and towards $80,000.
Bitcoin (BTC) price is showing signs of a potential reversal but lacks confirmation, which has split the investor community into two – those buying the dips and those expecting a further correction.
Also Read: Bitcoin Weekly Forecast: BTC’s Next Breakout Could Take It To $80,000
Bitcoin price falls by double digits
Bitcoin price plunged into the weekly imbalance, extending from $59,111 to $53,120, as mentioned in previous FXStreet publications, flashing a buy signal. But investors are likely to get cold feet after a 15% crash in the past ten days.
The recent dip in the aforementioned imbalance cleared the pooled sell-side liquidity resting around the flat lows of $59,111, allowing margin buyers to build. For a recovery rally to begin, BTC needs to form a base around $60,000 and bounce back to the 2021 high of $69,138.
Breaching the descending resistance level and connecting the lower highs formed since March 14 will confirm a breakout and the resumption of a bullish trend. This development could propel BTC to a new all-time high (ATH) and eventually to the next key psychological level of $80,000.
BTC/USDT 1-day chart
Also Read: Week Ahead: Bitcoin May Surprise Investors This Week
Should you buy BTC here?
Previous publications predicted a dip in the imbalance as a good zone to buy BTC. So, to answer the question, yes. Here are two reasons why you should pay attention to BTC at current levels.
The risk-to-reward ratio is skewed. The upside of this trade idea is $80,000, an increase of about 35%, while the reversal level at $50,000 is 14% away. Investors with low risk tolerance can cut the trade if BTC fails to recover above $61,150 or the $53,120 support barrier turns into a resistance level. According to veteran trader and technical analyst Peter Brandt, if Bitcoin can hold the current lows around $56,900 and move higher, it could signal a continuation of the bull market.
BTC Analysis by Peter Brandt
According to Santiment’s Whale Transaction Count (WTC), transactions worth more than $100,000 rose between April 29 and May 2, showing that institutional investors may have bought BTC amid the recent price drop.
BTC WTC
The recent downturn in Bitcoin price has seen a spike in social volume for terms like “buy the dip” and “bought.” This index is also in line with what the WTC metric indicates, adding credence to the potential reversal discussed above.BTC social volume
All in all, the outlook for Bitcoin price looks bullish. As mentioned above, the $50,000 undo level is a clear indication of which side is in control. In the event that BTC turns the above key psychological level into resistance, it could trigger a 10% collapse to the next critical weekly support level at $45,156.
Bitcoin price is considering a potential reversal after dipping into the weekly imbalance zone that stretches from $59,111 to $53,120. On-chain and social statistics predict a potential involvement of whales buying the dips. A successful recovery rally could send BTC past the current high of $73,949 and towards $80,000.
Bitcoin (BTC) price is showing signs of a potential reversal but lacks confirmation, which has split the investor community into two – those buying the dips and those expecting a further correction.
Also Read: Bitcoin Weekly Forecast: BTC’s Next Breakout Could Take It To $80,000
Bitcoin price falls by double digits
Bitcoin price plunged into the weekly imbalance, extending from $59,111 to $53,120, as mentioned in previous FXStreet publications, flashing a buy signal. But investors are likely to get cold feet after a 15% crash in the past ten days.
The recent dip in the aforementioned imbalance cleared the pooled sell-side liquidity resting around the flat lows of $59,111, allowing margin buyers to build. For a recovery rally to begin, BTC needs to form a base around $60,000 and bounce back to the 2021 high of $69,138.
Breaching the descending resistance level and connecting the lower highs formed since March 14 will confirm a breakout and the resumption of a bullish trend. This development could propel BTC to a new all-time high (ATH) and eventually to the next key psychological level of $80,000.
BTC/USDT 1-day chart
Also Read: Week Ahead: Bitcoin May Surprise Investors This Week
Should you buy BTC here?
Previous publications predicted a dip in the imbalance as a good zone to buy BTC. So, to answer the question, yes. Here are two reasons why you should pay attention to BTC at current levels.
The risk-to-reward ratio is skewed. The upside of this trade idea is $80,000, an increase of about 35%, while the reversal level at $50,000 is 14% away. Investors with low risk tolerance can cut the trade if BTC fails to recover above $61,150 or turns the $53,120 support barrier into a resistance level. According to veteran trader and technical analyst Peter Brandt, if Bitcoin can hold the current lows around $56,900 and move higher, it could signal a continuation of the bull market.
BTC Analysis by Peter Brandt
According to Santiment’s Whale Transaction Count (WTC), transactions worth more than $100,000 rose between April 29 and May 2, showing that institutional investors may have bought BTC amid the recent price drop.
BTC WTC
The recent downturn in Bitcoin price has seen a spike in social volume for terms like “buy the dip” and “bought.” This index is also in line with what the WTC metric indicates, adding credence to the potential reversal discussed above.BTC social volume
All in all, the outlook for Bitcoin price looks bullish. As mentioned above, the $50,000 undo level is a clear indication of which side is in control. In the event that BTC turns the above key psychological level into resistance, it could trigger a 10% collapse to the next critical weekly support level at $45,156.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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