Is This The Right Time To Buy Bitcoin? Here Are The Entry Levels

Beware, crypto enthusiasts!

Blockchainedbb, the renowned crypto analyst, is waving the red flag in a series of recent posts, advising investors and traders to tread carefully before diving into Bitcoin (BTC) at its current peak. With a detailed breakdown of market dynamics, Blockchainedbb sheds light on the lurking risks and suggests a strategic entry point for BTC enthusiasts.

The Current Market Scenario

While Bitcoin remains relatively stable, altcoins are taking a beating, with some seeing significant drops of up to 60% from their recent highs. This leaves many portfolios bleeding, forcing stakeholders to ponder whether to cut their losses or double down.

However, the $55,000 mark doesn’t offer much support for Bitcoin. The “fair value gaps” on the charts serve as warning signs, suggesting that Bitcoin might not necessarily rebound to fill them. Ignoring these gaps could lead to further declines.

This Might Interest You: Crypto Analyst Lark Davis Lists 9 Altcoins That Will 9x In 2024

When to Start Buying Bitcoin?

Blockchainedbb suggests that for a significant change in market direction, Bitcoin needs to break above $68,000. Only then should investors consider buying with a target of $75,000. Anything before this crucial point is like “trying to catch a falling knife”, as the market could swing in any direction.

If Bitcoin doesn’t 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%.

Hopes of a Revival?

Adding to the uncertainty, unresolved geopolitical tensions, especially in the Middle East, could exacerbate the situation, leading to further downturns. Additionally, crypto markets operate on weekends, making Bitcoin 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.

Read More: Crypto Market Analysis : Bitcoin Price Bounce Back; What Can We Expect from Altcoins This Week?

So, When Should You Dive In?

In parting advice, Blockchainedbb warns against hastily averaging down until Bitcoin shows a clear shift in sentiment, signaled by a daily close above $68,000. Investors should assess their financial situation carefully and prepare for the possibility of waiting to recover losses or make gains if Bitcoin dips below the $53,000 support level.

Investors should be prepared for potential downside and upside volatility in the coming weeks.

Source link

See also  What’s Next for the Bitcoin Price Rally? Will it Breakout Through the ATH or Undergo a Minor Pullback?