BTC Buy Signals Sound As Bitcoin Price Drops 15%, BTC's First Drop Since Trump's Win
2024-12-23
The BTC buy signal goes off when the Bitcoin price falls 15%. This decline caused quite a large FUD phenomenon, but several analysts considered the fall in BTC prices to be an opportunity.
Since Trump's victory, this is the first time the price of BTC has fallen after breaking more than $107,000.
Key Takeaways
1. In the last week, Bitcoin was observed to experience a decline of up to 15% and fell to $95,000.
2. Santiment notes that Bitcoin often exhibits behavior that is contrary to the expectations of the majority of retail investors.
3. When market sentiment is very pessimistic, BTC has the potential to experience a recovery or even a price spike.
Jerome Powell's statement immediately turned the crypto market red. Bitcoin also did not escape the negative trend of the crypto market after Jerome Powell spoke about increasing interest rates.
In the last week, Bitcoin was observed to experience a decline of up to 15% and fell to $95,000.
BTC Price Drop Analysis
According to a report from crypto analysis platform Santiment, the long-term market correction has raised concerns among investors.
Overall market sentiment has now reached its "most statistically negative level so far this year."
Even though it looks worrying, this situation could actually be a hidden opportunity for Bitcoin (BTC).
Santiment notes that Bitcoin often exhibits behavior that is contrary to the expectations of the majority of retail investors.
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This means that when market sentiment is very pessimistic, BTC has the potential to experience a recovery or even a price spike.
This is in line with a market phenomenon known as "contrarian investing," where opportunities often arise when the majority of market players are too pessimistic.
In this context, it is important for investors to keep a close eye on market movements and in-depth on-chain data, as extreme sentiment swings like these can provide valuable signals for investment opportunities.
Sound BTC Buy Signals
Renowned crypto analyst Ali Martinez identified a potential “buy signal” for Bitcoin (BTC) after a market correction occurs, based on sequence analysis TD Sequential on the 4 hour chart.
This indicator is often used to recognize exhaustion in price movements, both upward and downward, and is usually an early sign of a trend reversal.
Martinez also highlighted a key support zone that could be an important turning point for Bitcoin. If this zone is successfully maintained, the asset has the potential to experience a significant price spike.
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However, if the support zone is broken down, BTC could face a drastic decline of up to approx $70.000, given the lack of strong support zones between these levels.
Currently, Bitcoin is in the critical area of a major support zone that is within a range $97.041 to $93.806.
In the latest movement, BTC even fell below the lower limit of the support zone in the evening before finally recovering, at least temporarily.
The movement that occurred in BTC indicates the importance of this support zone in determining the next direction for Bitcoin.
For investors, conditions like this indicate the need for caution as well as an opportunity to take advantage of potential price reversals, while still paying attention to market data and technical indicators.
Final Notes
The decline in BTC prices by 15% actually contains two meanings, namely pessimism and a golden opportunity to start investing.
However, decisions regarding investment in crypto assets must be accompanied by sufficient awareness and knowledge, not necessarily just because you read certain analysis.
This article is simply an educational article and to increase insight into the latest crypto conditions, in no way inviting or recommending the purchase of certain crypto assets, including Bitcoin.
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Disclaimer: The content of this article does not constitute financial or investment advice.
