Bitcoin has been experiencing a significant correction, but VirtualBacon reassures that there’s no need to panic. Despite the drop, Bitcoin is still holding above the critical Bull Market Support Band, a key indicator for continued upward momentum. He dives into what this correction means for Bitcoin and how altcoins could offer excellent opportunities for buyers during this dip.
Excited to dive into the altcoin market here are the key sectors you can consider.
Bitcoin’s Bull Market Support Band Still Intact
He further emphasizes the importance of the Bull Market Support Band, which currently lies between $61K and $62.5K in the weekly timeframe. This zone is essential for Bitcoin’s sustained bullish trend. As long as Bitcoin stays above $58K, he believes the correction is a natural, healthy movement before the next leg up. He highlights that a weekly close above $58K would reinforce the idea that this is merely a temporary dip. However, a break below this level might trigger a more cautious approach, signaling that the overall strategy should be reconsidered.
Key Buying Zones
He has identified two major buy zones for Bitcoin during this correction: $62.5K and the range between $58.8K and $60K. These levels correspond with the 200-day EMA, a crucial support line for Bitcoin in previous months. According to him, patience is key. He advises waiting for two consecutive weekly closes above $63K to confirm a strong bounce. This could set Bitcoin up for a new rally, possibly pushing the price above $66K.
Where Are the Opportunities?
Beyond Bitcoin, analyst highlights the performance of altcoins during this correction. He divides his altcoin portfolio into five sectors: AI, gaming, meme coins, real-world assets (RWA), and Layer 1 projects. Some of his top altcoin picks include Fetch.ai, SuperVerse, and Fantom.
AI Coins: He notes that AI-based projects, like Fetch.ai and SingularityNET, have shown resilience and are worth considering during dips. He sees them as strong candidates for recovery.
Gaming Coins: Coins like SuperVerse have outperformed the market despite the correction. He recommends buying within the range of $0.78 to $0.92 with a stop-loss at $0.58.
Meme Coins: Even though they’re notorious for their volatility, meme coins like Shiba Inu and Doge have held strong. He further advises focusing on established names for potential gains during this period.
Macro Factors and What to Watch
He advises monitoring macroeconomic factors, particularly the September jobs report, as a higher unemployment rate (4.5% or above) could negatively impact Bitcoin’s price. Despite the current correction, he remains optimistic but stresses the importance of Bitcoin holding above the $58K support level to avoid a bearish shift. He reassures investors to stay calm, highlighting Bitcoin’s continued uptrend and the potential opportunities in altcoins for those buying the dip. His key message is to remain patient, track key levels, and take a strategic approach during this correction.
