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The October 10 crash triggered the worst liquidation event in cryptocurrency history, and Bitcoin price suffered enormously consequently. The initial downward wave had pushed it towards $102,000 before recovering, but subsequent waves eventually saw the value fall below $100,000 for the primary time in over 4 months. However, because the cryptocurrency appears to be finding its footing available in the market again, the query of whether it’s time to buy or wait for an additional decline has turn into louder, and crypto analyst MarcPMarkets has answered it.
Why BTC is an excellent place to purchase
To answer the query of whether it’s an excellent time to purchase BTC despite the Bitcoin price decline in recent weeks, MarcPMarkets believes that purchasing BTC at around $100,000 offers upside potential. The crypto analyst explains that despite the incontrovertible fact that the bulk are still bearish as a result of the decline, this doesn’t change the incontrovertible fact that Bitcoin still represents an excellent opportunity to purchase because it is in an area that has the potential for a bullish reversal.
An essential factor that contributes to BTC being low cost to purchase is the incontrovertible fact that the macroeconomic environment continues to be very inflationary for the time being. Given the limited supply of Bitcoin, it seems to some to be the “perfect” profit for governments’ countless money printing. The more fiat currencies flood the market, the more helpful it becomes to carry BTC, as the value of Bitcoin is anticipated to rise in response.
The crypto analyst also explains that the federal government shutdown within the USA has created an alleged information gap. The shutdown has prevented helpful information from becoming public, and these missing reports could have a major impact on price.
Source: TradingView
Additionally, the US Federal Reserve has taken a more dovish stance, which has a positive impact on risk assets like Bitcoin. Interest rates have fallen and the FedWatch tool shows expectations for further cuts rising to three.50% to three.75%. The Fed can also be expected to finish quantitative tightening and move on to quantitative easing in early December, creating a positive environment for Bitcoin price to get well.
Bitcoin price just needs to carry the support
Bitcoin price continues to be not completely out of balance and wishes to keep up strong support for a recovery to happen. MarcPMarkets notes that there continues to be support at $98,000, but when the cryptocurrency cannot hold this level, then Bitcoin price faces the subsequent support at $95,000.
However, the most important cause for concern is around $80,000 as a drop towards this level could signal the beginning of the subsequent bear market. On the one hand, the analyst explains that $88,000 overlaps with wave 1 and that a fast rebound from here would mean that Bitcoin price is in a broader corrective wave.
“I consider the broader bullish structure (Wave 4) continues to be intact until price intersects with Wave 1 at 88,000,” the analyst said. “IF this level can’t be tested as a part of this down attempt, meaning a broader wave 5 is prone to follow, which could theoretically result in a test of the 126,000 high.”
BTC fails to keep up momentum | Source: BTCUSD on Tradingview.com
Featured image by Dall.E, chart by Tradingview.com
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