- Bitcoin is down 6.74% in the last 24 hours.
- Financing rates on exchanges remain high.
Analysts say now is a great moment to “buy the dip” in Bitcoin (BTC), even though it has fallen 20% from its all-time highs. Bitcoin and several other cryptocurrencies are trading at their lowest levels in six weeks on Black Friday. A decline in the U.S. dollar and uneasy macro markets caused an overnight sell-off in BTC/USD, now trading at $54,614.
Despite the media’s focus on the slide, many investors remain unconcerned, arguing that current prices represent an excellent entry point. A Bloomberg report claiming that Bitcoin has entered a bear market sparked a slew of jokes from others.
Caution Against Following the Herd
Scott Melker, a well-known trader and podcast presenter, cautioned against following the herd and anticipating further lower prices to purchase at.
Financing rates on exchanges remain high despite over $700 million in 24-hour liquidations. This indicates that selling is not yet done. The unique dollar-to-Bitcoin link, Melker said, was a result of the virus’s “jolt” effect. It is not uncommon for Bitcoin and the U.S. dollar to have an inverse link.
However, rather than boosting Bitcoin’s value, macro markets and the U.S. dollar currency index have taken a toll on the biggest cryptocurrency. Buyer support around $53,000, which approximately equates to Bitcoin’s $1 trillion market value, stands in the way of more losses on the cryptocurrency. Black Friday deals are a frequent trend for Bitcoin, as seen by the history of the cryptocurrency.
For the first time in three years, BTC/USD fell to roughly $16,400 in late November 2020, before resuming its upward trajectory and breaking beyond the $20,000 barrier. According to CoinMarketCap, the Bitcoin price today is $54,614.20 USD with a 24-hour trading volume of $42,837,769,361 USD. Bitcoin is down 6.74% in the last 24 hours.