Bitcoin Bulls Buy the Dip as Analytic Firm says BTC Price Recovery is Optimistic
Sarah Tran Nov 27, 2020 06:34
Bitcoin’s price has recently corrected after weeks of making straight gains, what's next for BTC?
Bitcoin’s price has recently corrected after weeks of making straight gains. The world’s largest cryptocurrency is currently trading at $17,323 at press time and is down by 3.5 percent in the past 24 hours.
Bitcoin’s price has failed to restest its all-time high, however, its price almost doubled since the start of September, which triggered an explosive rally. Bitcoin’s price rally was triggered when the cryptocurrency moved past its long-time resistance level at $12,000, and that PayPal would be supporting cryptocurrencies.
Upon retesting its all-time high, Bitcoin’s price retraced and crashed by over $3,000, however, it has remained above a few support levels. Bitcoin bulls are now motivated to buy the dip before BTC gains further bullish momentum. Anthony Pompliano, co-founder at Morgan Creek Digital and Bitcoin bull has recently announced on Twitter that he has bought more Bitcoin during the dip:
“I bought more bitcoin last night. I bought more bitcoin this morning. Dollar cost averaging and multi-year time horizons allow you to view price decreases as opportunities to buy a great asset on sale.”
Pompliano hit 400,000 followers on Twitter recently, and Bitcoin skeptic, Peter Schiff responded by saying:
“Congratulations to @APompliano for hitting 400K Twitter followers. You're almost 100K ahead of me. However, I may have a chance to pass you after the #Bitcoin bubble deflates and real #gold remains the best safe haven and store of value left standing.”
Renowned Bitcoin critic Peter Schiff has long expressed his views on why he believes gold is better than Bitcoin. He believes that it is more efficient to use gold as a payment method than it is to use gold. Schiff said that gold is money and that Bitcoin is not.
Data from crypto analytics firm Santiment shows that Bitcoin has shown some red flags lately, including a high BitMEX funding rate, high social volume and mildly declining network activity. Santiment noted that Bitcoin's BitMEX funding being sky-high is a modest concern for Bitcoin bulls.
The crypto analytics firm further noted that the ability for Bitcoin to reach $19,000 again would rely on Tether on exchanges remaining low. Santiment explained:
“The ability for #Bitcoin to return to $19k and beyond will likely coincide with $USDT on exchanges remaining low. #Tether exchange supply rises are reliable profit taking opportunity signals for $BTC.”
However, the analytics firm noted also noted that daily active addresses for BTC is still looking bullish in a long-term rising pattern, which is one of the best leading metrics to predict future price growth. Santiment concluded that this is a reason to be optimistic about a price recovery.
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