Bitcoin (BTC) Price Relief Rally Ahead As ‘Buy The Dip’ Calls Surge

Calls to "buy the dips" in Bitcoin are resurging as BTC rebounds from lows under $59,000, hinting at an imminent relief rally in BTC price.
By Bhushan Akolkar
Bitcoin (BTC) Price Breaks $70K Barrier: New Whales and Market Trends to Watch

Highlights

  • Bitcoin FUD among traders suggest a relief rally is around the corner.
  • Bitcoin bulls absorb the dips under $59,000 earlier pushing the BTC price back above $60,000.
  • If BTc price fails to recover from 100-day SMA, it can further correct to $52,000.

One day before the commencement of the FOMC meeting on Wednesday, May 1, the Bitcoin (BTC) price saw significant selling pressure. At the time of reporting, Bitcoin is trading at $60,189, marking a decrease of 5.4% and bringing its market capitalization to $1.19 trillion

Bitcoin Price Rebound Likely As Buy The Dip Calls Surge

With a nearly 6% Bitcoin price drop in the last 24 hours, there’s a very high level of fear, unrest, and doubt (FUD) among traders which suggests that the BTC relief rally could be around the corner.

In a recent analysis, cryptocurrency expert Ali Martinez highlighted a significant trend concerning Bitcoin’s price dynamics. Martinez pointed out that the last time Bitcoin tested the 100-day Exponential Moving Average (EMA) with the Relative Strength Index (RSI) dipping to 36 was in late January, which subsequently triggered a substantial price rebound. Now, Bitcoin finds itself once again at these critical levels.

Courtesy: Ali Martinez

However, Martinez cautioned investors to be vigilant, suggesting that a sustained close below the 100-day EMA could potentially indicate a downward movement toward the 200-day EMA, which is at the $52,000 level.

In today’s development, the BTC price took a dip under $59,000, however, quickly recovered above $60,000 once again. According to insights from on-chain analytics firm Santiment, Bitcoin experienced a drop to $60,000 for the first time since April 18th, attributed to resurfacing concerns about inflation in the United States. This downturn has coincided with a notable increase in mentions of Bitcoin and calls to “buy the dip,” indicating a resurgence of polarization among traders in the market.

Courtesy: Santiment

A Poor closing to April

Bitcoin’s performance during the last month of April was the worst since the FTX collapse back in November 2022. In April, the leading cryptocurrency experienced a significant downturn, dropping nearly 16%. This decline followed a surge in enthusiasm for US spot Bitcoin exchange-traded funds (ETFs), which had previously propelled the token to a peak of nearly $74,000 in March.

Despite high anticipation, the debut of Bitcoin and Ether ETFs in Hong Kong on Tuesday did not generate the expected momentum. The trading volume for these six vehicles amounted to $12.7 million on the first day, a substantial figure locally but notably lower than the $4.6 billion achieved by US products upon their launch in January.

Advertisement
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.