Bitcoin Still In Buy Zone Amidst Market Correction – Should You Buy The Dip? Or Wait For More Drop?

The overall crypto market is under a bearish pull where the majority of the cryptocurrencies are trading below their crucial levels. Amidst such pump and dump a well-known crypto analyst and trader claims Bitcoin is still under the buy zone.

Timeline of Bitcoin

Billionaire Mike Novogratz is predicting Ethereum (ETH) is near the bottom after its successful merge upgrade earlier this month. In a new CNBC interview, the CEO of Galaxy Digital praises the Ethereum merge and makes a bottom price prediction, while also ruling out a “catastrophic fall” in the price of Bitcoin (BTC).

The ongoing race among central banks to lift rates and support their currencies to keep inflation under check suggests the path of least resistance for risk assets is to the downside.

Bitcoin price managed to stay above the $18,500 support zone. BTC is currently (11:00 UTC) trading above $19,000. However, the price is still facing a couple of major hurdles near $19,500 and $19,600.

MicroStrategy chairman and co-founder Michael Saylor reckons Bitcoin has hit the price floor and is ready for its journey to all-time highs of US$68,990 in the next four years. But that's peanuts compared to where it's going in a decade; speaking to MarketWatch editor-in-chief Mark DeCambre on Wednesday, Saylor suggested a price point of US$500,000 is not totally unreasonable.

Bitcoin immediately felt the impact of Wednesday's Federal Reserve interest rate increase and failed to gain upward traction. Other macroeconomic variables also contributed to the decline of the world's leading cryptocurrencies, including Ethereum and other significant cryptocurrencies.

The Federal Reserve's interest rate hike by 75bps has majorly impacted the crypto market as once the results were announced, the already bearish market saw another leg down. The world's first cryptocurrency, Bitcoin, which had managed to regain the $19,000 level, has now yet again dropped to around the $18,000 area.

A popular crypto analyst known for calling the Bitcoin (BTC) May 2021 collapse says BTC is still in the “buy zone” despite the sputtering market. The pseudonymous trader known as Dave the Wave tells his 126,600 Twitter followers that Bitcoin is in an extended sideways range within the buy zone.

Many people first get into crypto because they hear stories about the huge gains Ethereum and Bitcoin once made. While these are still strong investments, it might be too late to make gains with them again.

The crypto markets again turn greener ahead of the long-promised Vasil Hard Fork in a much similar way the markets recovered before the Merger. The Bitcoin price which underwent an 8% decline with the fresh increase in the Fed interest rates, has turned bullish ahead of the fork.

Bitcoin, the world's largest cryptocurrency has failed to gain upward momentum due to the Fed rates hike in sight and other macroeconomic factors. Meanwhile, a whale tracker has reported several Bitcoin accumulation transactions which suggest that whales are buying the dip.