Bitcoin May Need To Hit This Level Before It Can Rally High

Disclaimer: The details in this article are just for learning and information. They are not meant as financial advice. Always check facts yourself before making any investment based on what you read here. Neither the writer nor the publisher will be responsible for any loss or damage that happens if you use this information.

Bitcoin has been on a rollercoaster ride recently, dropping as much as 24% from its recent high. Just when everyone was buzzing about the possibility of it hitting $100,000, the price took a sharp turn downwards. So, what should we do next?

In this blog post, we're going to explore strategies that can help you navigate through Bitcoin's price volatility and potentially profit from the cryptocurrency market. So let’s now learn how to make smarter decisions in the fluctuating world of crypto investing.

1. How To Tell If Bitcoin Is Ready For A Strong Bull Run

Bitcoin has been on a rollercoaster ride lately, and we're not out of the woods yet. To truly break out of the current downward trend, Bitcoin needs to surpass $65,600. Here's why:

A downward trend in the market is marked by continually lower highs and lower lows. To reverse this trend, Bitcoin must reach a new high that is higher than the previous one, which was $65,541 in early May. Crossing this mark will signify a potential end to the downtrend.

Once we achieve a new high, the next step is to have a new low that is higher than the previous low to confirm that the market is moving upward. To confirm the trend has turned bullish, we need the new low to hit higher than $56,522.

This accuracy in prediction shows that the market is behaving predictably, which means the current downturn isn't a total surprise but part of the typical market movements. But what we do need is a lot of patience to wait for the chart formation to complete because making any decision.

2. How Far Can Bitcoin Drop To?

I've also re-draw my Fibonacci analysis, which now suggests that Bitcoin may need to drop back to around $52,000 before it can start climbing again. It's important to remember, though, that these are just tools to help us understand market trends—they aren't guarantees.

Being mentally prepared for these movements is crucial, especially since they fit within the expected behavior in a bull market.

Is There A Real Concern For This Correction?

Here's a look back at the correction during the last Bitcoin halving back in May 2020:

The correction back in 2020 after the last Bitcoin halving then was around 20%. Hence, to drop back to $52,000 (which is about 29% drop from recent high) is nothing unusual. In fact, it might even be a good chance to consider investing in other cryptocurrencies, known as altcoins.

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4. Concluding: What Can We Do Next?

Based on the analysis discussed in the blog article, here are three actions a wise investor might consider for their cryptocurrency investments:

1. Use Fibonacci Levels to Find Good Buy Points: When planning to buy Bitcoin, consider using Fibonacci levels like 61.8%, 50%, and 38.2% as your guide. These levels often show where the price might stop dropping and start going up again. Watch these levels closely and look for signs like certain patterns on price charts or an increase in trading volume that confirm it's a good time to buy.

2. Diversify into Altcoins: When Bitcoin's price is going up and down a lot, other types of cryptocurrencies, called altcoins, might be a good option to make more money. Try to spread your investment into different altcoins, especially those that seem strong and have a chance to grow. Make sure to do your homework and pick the best ones.

3. Invest Regularly Over Time (Dollar Cost Averaging): This strategy involves investing a set amount of money into Bitcoin at regular intervals, no matter its current price. Do note there’s no guarantee that Bitcoin will definitely drop to $52,000. Doing DCA will help avoid the risk of investing a large amount at the wrong time and can lower the average cost of your Bitcoin over time. It’s a simple way to build your investment without having to guess the best times to buy.

If you like analysis like this, do remember to subscribe to Crypto Profit 101 newsletter for more similar analysis. And don’t forget to share this with your friends to win together in this coming bull run.

While it's essential to stay cautious, understanding these patterns can help us make informed decisions about when to invest. Keep an eye on the market, and let's prepare for the next potential uptrend in Bitcoin!

Final Thought: As we navigate the often turbulent waters of cryptocurrency investment, it’s essential to remember that with great volatility comes great opportunity. Are you prepared to adapt and harness these opportunities to your advantage, or will you watch from the sidelines? Remember, the choice you make today could define your financial future. What will your next move be?

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. The views expressed are those of the author and do not necessarily reflect the official policy or position of any company. Readers should do their own research before taking any actions related to the content. The author and publisher are not liable for any losses or damages caused by following any advice or information presented herein.