The October 10th crash had triggered the worst liquidation event to date in crypto history, and the Bitcoin price suffered tremendously for it. The first wave of the downtrend had sent it towards $102,000 before the recovery, but the subsequent waves eventually saw the price break below $100,000 for the first time in over four months. But as the cryptocurrency looks to find its footing again in the market, the question of whether it’s time to buy or wait for further declines has become increasingly louder, and crypto analyst MarcPMarkets has answered.
Why BTC is a great place to buy
To answer the question of whether it is a good time to buy BTC despite the Bitcoin price crashing in recent weeks, MarcPMarkets think that there is potential for upside to buy BTC at around $100,000. The cryptoanalyst explains that while the majority is still bearish on the decline, it does not take away the fact that Bitcoin still offers a good opportunity to buy, as it is in an area that has the potential for a bullish reversal.
A major factor that plays into buying BTC being favorable is the fact that the macro environment right now is still very inflationary. Given Bitcoin’s limited supply, it has appeared to some as the “perfect” edge to the endless money printing carried out by governments. As more fiat currency floods the market, it becomes even more valuable to hold BTC as Bitcoin price is expected to rise in response.
The cryptanalyst also explains that the US government shutdown has created what is said to be an information gap. With the shutdown in place, valuable information has not made its way to the public, and these missing reports can have a big effect on the price.
Additionally, the US Federal Reserve has moved towards a more dovish stance, which is positive for risk assets such as Bitcoin. Interest rates have fallen, and the FedWatch Tool shows that expectations for further reductions to 3.50%-3.75% are on the rise. The Fed is also expected to end quantitative tightening and enter quantitative easing in early December, creating a enabling the Bitcoin price to recover.
Bitcoin Price just needs to hold support
The Bitcoin price is still not completely out of the woods and needs to maintain major support for a recovery to occur. MarcPMarkets points out that there is still support at $98,000, but if the cryptocurrency fails to hold this level, the Bitcoin price will be facing the next support at $95,000.
However, the main levels of concern are around $80,000, as a fall towards this level could signal the start of the next bear market. First, the analyst explains that $88,000 overlaps with Wave 1, and fail to bounce from here quickly would mean Bitcoin price is in a broader corrective wave.
“I think the broader bullish structure (Wave 4) is still intact until price overlaps Wave 1 at 88K,” the analyst said. “IF this level cannot be tested within this bearish attempt, it means a wider Wave 5 is likely to follow which could theoretically see a test of the 126K high.”
Featured image from Dall.E, chart from Tradingview.com
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