Bitcoin (BTC) Price Prediction: Should You Buy the Dip?

Bitcoin [BTC] remained bearish, as the king coin was trading under $57k at press time. While this initially looked disastrous, for savvy investors, this might as well be a right opportunity to buy the bottom.

Bitcoin [BTC] price continued its bearish trend below $57,000, but for experienced investors, this could be a good opportunity to buy the dip.

According to CoinMarketCap data, BTC price has dropped more than 3 percent in the last seven days. In the last 24 hours, Bitcoin lost approximately 4 percent of its value.

At the time of writing, the BTC price was $56,760.06 and the market cap of the cryptocurrency was more than $1.12 trillion.

Should you evaluate Bitcoin's decline?

On the other hand, a well-known crypto analyst named Ali published a tweet in which he shared a development indicating a bullish trend. Top BTC traders on Binance showed a slight bullish bias, with 51.79 percent of investors taking long positions for BTC.

Usually, an increase in the number of long positions in the market indicates that the bullish sentiment about an asset is increasing.

Therefore, AMBCrypto took a detailed look at BTC's situation and investigated whether investors should consider buying the dip.

According to Glassnode data, BTC price was well below the possible market bottom. According to the Pi Cycle Top indicator, BTC's possible market bottom was $58,900.

This showed that BTC could move towards $58,900 in the coming days.

Source: Glassnode

Assessing the path ahead for BTC

AMBCrypto checked other data sets to see if this is the right time to accumulate since the BTC price is well below the possible market bottom.

According to the Bitcoin Rainbow Chart, BTC price was in the "Basically Hot Sell" zone. This showed that the current price of BTC is significantly lower than it should be and is a great opportunity for accumulation.

Source: Blockchaincenter

AMBCrypto then checked CryptoQuant data to see if investors had started buying more BTC. It was seen that Bitcoin's Exchange Reserve decreased, indicating an increase in purchasing pressure.

Also, the cryptocurrency's Korean Premium was green, indicating a prevailing buying trend among South Korean investors. However, Coinbase Premium went into the red. This showed that American investors were considering selling BTC.

Source: CryptoQuant

Read our article titled Bitcoin [BTC] Price Forecast 2024–2025

Chaikin Money Flow (CMF) rose. This showed that BTC's bear market price movement may end soon.

However, the Relative Strength Index (RSI) moved downwards, meaning that the possibility of BTC falling further cannot be ruled out just yet.

Source: TradingView

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