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Here’s Why Now May be the Best Opportunity to Buy the Dip

While analysts urge investors to hold their crypto assets and stay put, Martinez is encouraging traders to top their stash in preparation for a price rally.

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With the crypto market in a bloodbath, analysts are urging market participants not to lose hope, as digital assets are bound to recover with time. While others are urging investors to hold their assets and stay put, technical and on-chain analyst Ali Martinez is encouraging traders to top their stash.

According to Martinez’s tweet, bitcoin’s current price range may be the best time for market participants to buy the dip.

A Time to Buy the Dip

In the past seven days, BTC has fallen 7% from $66,000, slipping below the traders’ on-chain realized price of $65,800. The asset has lost roughly 15% of its value in the past three weeks and was trading at $61,400 at the time of writing.

Following bitcoin’s plunge below $62,000, Martinez believes the market has presented an excellent opportunity to buy. 

To substantiate his claim, the analyst explained that Bitcoin’s daily Relative Strength Index (RSI) has hit oversold territory thrice in the past two years. Each plunge into the territory has resulted in subsequent price rallies of 60%, 63%, and 198%, respectively.

The RSI measures the short-term momentum of the market. It highlights an asset’s recent trading strength by analyzing its pace and direction. 

With BTC now hovering under $62,000, Martinez said it is in oversold territory again; hence, traders can buy the dip because the cryptocurrency could experience a parabolic uptrend from its current level.

“In the past two years, the #Bitcoin daily RSI has hit oversold territory three times, resulting in $BTC price surges of 60%, 63%, and 198%, respectively. With BTC now below $62,000 and the RSI in oversold territory again, it might be a prime opportunity to buy the dip!” Martinez stated.

Bitcoin’s Upcoming Rally

If Martinez’s analysis is correct, Bitcoin could rally to new highs predicted by several financial firms and experts. There have been predictions that BTC will hit $100,000, $250,000, and even $500,000 at the peak of this cycle in 2025, primarily driven by the halving event, historical patterns, and high demand from investors.

In addition, some analysts believe the cryptocurrency will inevitably hit $1 million, although they did not include timelines in their forecast.

Cynthia Ezirim

Cynthia Ezirim is a news reporter at Cointab who is passionate about Bitcoin, non-fungible tokens, and decentralized technology. She joined the crypto space in late 2022.