Bitcoin’s massive rise from under $70,000 to over $108,000 within a month and a half after Donald Trump’s landslide victory in the US presidential elections left some investors outside the circle.
However, the ever-volatile nature of BTC always leads to substantial corrections that provide opportunities for those who missed the initial train to get on board. In the past couple of days, bitcoin’s price tumbled by double-digits, which, according to Santiment, has made the crowd seek to buy the dip.
Moreover, history shows that it could send BTC flying again.
Is BTC About to Bounce?
As the analytics platform noted, the last time these discussions exploded in a similar manner was in early August when the cryptocurrency’s price tumbled below $50,000. Just a few days later, though, the asset had climbed by over 25% to beyond $62,000.
If history is to repeat itself now, even though BTC’s market cap is a lot higher, bitcoin could recover from its big retracement and head toward a new all-time high again of over $120,000.
With Bitcoin falling as low as $95.5K today, the ratio of crypto discussions that are about buying crypto’s dip has reached its highest level in over 8 months. The last time we saw the crowd nearly this enthusiastic about dip buying was the major crash on August 4th. Since… pic.twitter.com/39NlpnGMCs
— Santiment (@santimentfeed) December 20, 2024
Not So Fast
Although the ‘buy-the-dip’ history shows that BTC’s correction could be over, this narrative is not supported by other on-chain and technical metrics, such as one particular demand zone.
IntoTheBlock posted even before bitcoin lost the $100,000 mark decisively yesterday that such an area had formulated at around $97,500, given the large number of investors purchasing at such prices more than 1.4 million BTC. These accumulations turned that level into an ‘important’ support zone, which has now been broken to the downside.
Once such vital support lines are breached and investors who had entered recently see their positions in the red, at least on paper, many tend to dispose of their holdings, which leads to more intense selling pressure for the underlying asset.
Will Bitcoin retrace below $100k?
Interestingly, a significant demand zone has formed just under $100k.
Over 1.45 million BTC was accumulated at an average price 97.5k, making this an important potential support zone. pic.twitter.com/vDcHEl8OKV
— IntoTheBlock (@intotheblock) December 19, 2024
