Bitcoin [BTC] Dilemma: Is This the Right Time to Buy the Dip?

Bitcoin [BTC] has been underperforming for the last seven days as its price dropped near $55k. However, the last 24 hours were in investors’ favor.

output: Bitcoin [BTC] encountered a price drop in the last seven days, coming closer to the $55k mark. However, the last 24 hours seemed to be in investors’ favor.

CoinMarketCap’s data revealed that in the past seven days, BTC’s price dropped by more than 17%. At the time of writing, BTC was trading at $55,128.85 with a market capitalization of over $1 trillion.

Considering that BTC is trading under $56k, this could be the right time to buy BTC. Hence, AMBCrypto decided to check some metrics to understand if there was buying pressure on BTC.

Our analysis of Santiment’s data showed that the exchange supply of BTC dropped sharply last week. This indicated that investors were buying BTC at press time.

Further, CryptoQuant’s data suggested that BTC’s exchange reserves were dropping. This again highlighted the fact that investors were buying BTC.

Apart from this, BTC's transfer volume and active addresses also increased, which can be taken as a bullish signal.

Our analysis of Glassnode’s data showed that BTC was resting way below its market bottom. The Pi cycle top indicator showed that BTC’s market bottom was at the $64k price. At press time, BTC was resting under this level. Further, if the metric is to be believed, then BTC’s market top would be over $99k.

AMBCrypto’s look at Bitcoin’s Rainbow Chart showed that the coin was in an accumulation phase. Whenever the indicator hits this level, it suggests that there is still a chance for investors to buy BTC at a lower price.

AMBCrypto then checked BTC’s daily chart to better understand what to expect from the coin in the coming days. Our analysis of the chart showed that the Relative Strength Index (RSI) registered an uptick.

The Money Flow Index (MFI) also followed a similar trend.

These market indicators suggested that there was a good chance for BTC to gain upward momentum.

However, the technical indicator MACD displayed a bearish edge in the market, which could stop BTC from moving up in the upcoming days.

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