Market Fluctuations and Investment Decisions: A Neutral Analysis of Current Crypto Trends

Title: Worth Buying Cheap Bitcoin Now or Will the Price Fall Further?

As the crypto market continues to fluctuate, a recent RSI signal has been observed on the charts, indicating a weakening bullish momentum and potentially foreshadowing an upcoming correction. This development echoes the 2021 bearish divergence that preceded the significant drop in the Bitcoin price from its all-time high of nearly $69,000 to around $15,000 by the end of 2022.

Currently, it appears that Bitcoin has struggled to maintain its position above the $100,000 mark, and a closer look at the charts reveals that the most important support lies at the 50-week EMA, which is expected to reach approximately $66,600 by January 2025. If this threshold cannot be maintained, the next level of support would be around $57,000, equivalent to the 0.786 Fibonacci retracement level – a significant decline from the current record price.

The recent drop below $100,000 has ignited a sense of “buy the dip” fervor in social media, with Santiment’s data indicating that this sentiment reached an all-time high in the past eight months as of December 19th. The “buy the dip” phrase mentions have surged alongside Bitcoin’s price decline to $95,500, mirroring a similar trend seen on April 12th when the price dropped below $70,000.

As global search interest for the term also spikes, it is clear that investors are fixating on the possibility of a turnaround in the market. However, whether this sentiment translates into actual buying pressure remains to be seen.

In light of these developments, the question remains: Is it worth buying cheap Bitcoin now or will the price continue its downward trajectory?

Sources:
– Santiment
– Bitfinex (Source)
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