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BTC Price Prediction: Bitcoin Signals Buy-the-Dip, Analyst Says

Published 02/04/2024, 01:57 PM
Updated 02/04/2024, 04:00 PM
© Reuters BTC Price Prediction: Bitcoin Signals Buy-the-Dip, Analyst Says
BTC/USD
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U.Today - Bitcoin's (BTC) price entered range-bound mode after bears stunted the growth of the top asset overnight. Without letting go, bears have pulled the price of the coin down to $42,822.59, with 1.21% growth in the past 24 hours. According to top market analyst Ali Martinez, this price level might prove to be significant for traders looking at a longer-term opportunity to flip the coin.

Taking to X, Martinez noted that the Bitcoin Market Value to Realized Value (MVRV) ratio has fallen below its 90-day average over the past 12 months. This signal, according to the analyst, presents a "buy-the-dip" opportunity.

The accompanying chart in the post showed that previous buy-the-dip moments are typically followed by a period of intense growth that leads to a lower high. The projection to buy the dip is an ambitious call, especially as investors are still dragging a price drawdown in Grayscale Bitcoin Trust (GBTC) through the transfer of their shares.

The market has been largely unstable, with Bitcoin liquidating bears on some occasions and reversing growth on other days. In all, the buy-the-dip moment might favor investors who are ready to ride the coin’s current volatility trends until it attains stability.

Bitcoin halving as major catalyst

Since the advent of spot Bitcoin Exchange Traded Fund (ETF) products failed to impact the price of BTC, many investors are already shifting their focus to the impact of Bitcoin halving on the market.

The event, slated to be held sometime in April, might ultimately shrink the supply of the asset. According to Samson Mow, this supply shortage and the massive increment in demand from BlackRock (NYSE:BLK) and Fidelity Investments will trigger a major upshoot in the price of Bitcoin in the near future.

Other top market experts are also optimistic that the halving event will catalyze the Bitcoin price beyond its previous all-time high (ATH) soon.

This article was originally published on U.Today

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