The correction of the crypto market continues as the price of Bitcoin corrects another 7% and falls below the $56,000 level. On the monthly chart, BTC just formed a new bottom as it carries on with breaking important support levels.
Bitcoin extended its weekly losses to over 15%. Currently, the price of Bitcoin is worth $55,938, and it has a market cap of slightly above $1 trillion. On a daily closing, $58,000 looks like it could be the crucial level or Bitcoin could continue to fall to $50,000 or even lower.
While the scenario isn’t exactly bright, there is always one option – buy the dip.
According to data from Glassnode, the illiquid supply for BTC has been going parabolic. The illiquid supply increase indicates more coins are going to cold wallets as a result of accumulation. The last time that the illiquid supply grew this quickly was in mid-2017 before the mega bull run began.
An on-chain analyst from the same company highlighted the short-term holder SOPR indicator, this being the reason why a bounce back is expected:
“At the very least, one should be expecting a #Bitcoin bounce right around now. STH-SOPR has fallen below 1, which means top-buyers are spending their $BTC at a realized loss. When top buyers capitulate, it is historically a local bottom.”
Therefore, it is very possible that Bitcoin will continue the correction by another 5% or even more, but, for people who are doing this in the long run, this dip seems like an excellent chance to buy.