In a series of X posts, the crypto analyst Blockchainedbb has cautioned investors and traders against buying Bitcoin (BTC) at the current price levels. The analyst has provided a comprehensive breakdown of the market conditions, highlighting the potential risks and suggesting an optimal entry point for BTC accumulation.
The Current Market Scenario
According to Blockchainedbb, while Bitcoin has not experienced a significant decline, altcoins have already suffered losses of up to 60% from their recent peaks. This has led to widespread portfolio bleeding, leaving investors grappling with the decision to either average down or cut their losses.
However, it is important to note that the $55,000 level does not strongly support Bitcoin. The grey boxes on the chart represent “fair value gaps,” which do not necessarily need to be filled. If these gaps are ignored, Bitcoin could potentially drop further.
When to Start Buying Bitcoin?
According to analysts, Bitcoin needs to go above $68,000 before the market structure changes in a bullish way. At that point, investors might want to buy with a goal of $75,000. Getting in before that level would be like “catching a falling knife” because the market could go in either direction.
The analyst warns that if the monthly fair value gap on the chart is disrespected, Bitcoin could drop to $42,000 before reaching $75,000. In such a scenario, holding altcoins becomes a significant risk, and some altcoins could potentially drop another 40-60%. Even if Bitcoin eventually reaches $75,000, investors may barely break even.
Read Also : Crypto Market Analysis : Bitcoin Price Bounce Back; What Can We Expect from Altcoins This Week?
Crypto Impact
He further highlights that if ongoing geopolitical conflicts or the Middle East situation is not controlled, the chances of further downside remain high. Plus, as crypto markets operate on weekends while other markets are closed, any negative reactions in gold, oil, or the S&P 500 could drag Bitcoin even lower.
Despite the current challenges, the analyst does not foresee a full-blown bear market from this point on. As this is an election year, the analyst expects the government to take measures to boost the economy, such as quantitative easing or interest rate cuts, potentially leading to a market rebound starting in June.
Look for Optimal Entry Points
He concludes his analysis with advice against averaging down until Bitcoin demonstrates a bullish market structure shift, which a daily close above $68,000 could signal. Investors should consider their financial situations and the potential wait time required to break even and generate gains if Bitcoin loses the $53,000 support level.
It’s worth noting that the crypto market has displayed a propensity for sudden upswings, even amidst bearish sentiments that have led to mass trader liquidations. Therefore, investors should be prepared for potential downside and upside volatility in the coming weeks.
Also Check Out : History Repeating? Altcoin Market Hints at Massive Bull Run Soon, Claims Top Analyst
