Home Bitcoin Bitcoin Price Recovery Elusive As BTC Tumbles Below $27k, Are Dips Attractive?

Bitcoin Price Recovery Elusive As BTC Tumbles Below $27k, Are Dips Attractive?

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Bitcoin Price Recovery Elusive As BTC Tumbles Below $27k, Are Dips Attractive?

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Bitcoin price has slid below $27,000 amid a spike in overhead pressure caused by concerns about the conflict between Israel and Hamas.

Down 2.2% in the last 24 hours, the largest crypto is trading at $26,816 on Thursday. The gloomy market outlook is not unique to BTC, considering Ethereum is down 0.5% to $1,560 while XRP has decreased 2.1% to $0.4838.

Bitcoin Price Prediction As Whales Accumulate USDT

Bitcoin price managed to stay above $27,000 following last week’s jump above $28,000. Investors and analysts had expected this support to hold to allow BTC to chart another recovery path to $30,000.

However, the geopolitical tensions linked to the war between Israel and Hamas are gradually changing the outlook amid fears of a recession setting in in the United States.

The impact of the war was nevertheless not expected to trigger a sell-off in the crypto market and most certainly not Bitcoin, especially with renowned hedge fund manager Paul Tudor Jones saying that he loved Bitcoin and gold at this time.

If the US enters a recession, there is a high chance Bitcoin will rally. Investors would want to hedge against traditional assets and currencies like the US dollar using Bitcoin, in turn, creating the necessary momentum for a rally.

Meanwhile, Santiment, a leading blockchain analytics firm has reported on a spike in active addresses related to the largest stablecoin, Tether (USDT). This has also led to an increase in exchange deposits mainly among wallets with between $1 million and $10 million USDT.

Significant increases in USDT balance on exchange indicate interest in future buys implying that investors are accumulating to purchase BTC at a later date.

IntoTheBlock, another blockchain data analytics platform, has revealed that “compared to traditional financial markets, Bitcoin currently has the highest Sortino Ratio.” In other words, BTC stands out as a “more favorable risk-adjusted return” when analyzed against other mainstream assets.

How Far Can Bitcoin Price Dips Go?

The Relative Strength Index (RSI) reinforces the bearish outlook, with Bitcoin likely to retest support at $26,000. Dips below this buyer congestion could trigger a bigger sell-off to $25,000, with the possibility of extending to $23,500.

Bitcoin price prediction chart
BTC/USD weekly chart | Tradingview

Some analysts like Rekt Capital believe Bitcoin price is yet to bottom out ahead of its much-awaited halving event in 2024. His most recent technical update reveals that there is a higher probability of a sweep through liquidity at $22,000 and $20,000 before BTC eases into the bull run.

An immediate recovery above $27,000 could help arrest the current bearish situation and increase confidence in the recovery to $30,000.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.



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