The Bitcoin is currently in a Buy the Dip Season for the Bitcoin. This is further reiterated by the strength emerging on the Bitcoin as another Bull run forms. Market moves from Bull to Bear cyclically as one prominent Crypto analyst puts it.
GalaxyBTC Reminds People that it Buy the Dip Season
In a recent tweet from @GalaxyBTC he reminded traders that a Short bet on the Bitcoin could be a really risky play. He tweeted that shorting the bounce is “Extremely risky play and the price could turn to the upside any moment, strong and fast, as it did before”.
He further adds that the current direction is more of a retracement than an outright reversal. Bitcoin rallies are known to be strong and fast and more importantly can change in a moment’s notice. Uptrend bounce backs have shown up to 30% strength
The Bitcoin Technicals Show that Bounce is Highly Likely
The technical analysis of the bitcoin has analysts expecting the coin to bounce back, especially when it hits bottom and traders start to buy the dip. Technical indicators that the bitcoin still has not found its peak. The parabolic curve has not been broken as of late and is indicative of further upward momentum. When you buy the dip, there is a likelihood of 30% upside when it grows.
On the downside however, there has only been a 20% decline so far which could mean it could have further to go before it starts climbing back.
The State of the Bitcoin: Double Bottom
The Bitcoin may not have rallied but the Bitcoin is creating a double bottom formation through a strong support formation at $7440. It has bounced back to reach $7800 but further growth is hindered by resistance line forming at $7950. The double bottom is forming and it could push the Bitcoin higher than $8000 with decent enough recovery.