Is Bitcoin’s Falling Price a Good Buying Opportunity?

Is Bitcoin’s Falling Price a Good Buying Opportunity?

The price dropped to $27,400 after the sale of Bitcoin assets by the US government. Drawings; indicates that the current price may be a good buying opportunity.

Bitcoin (BTC) Prices rose after the Bureau of Labor Statistics released its Consumer Price Index (CPI) report on May 10. This information; It shows inflation in April falling from 5 percent in March to 4.9 percent and below the expected 5 percent.

However, when news spread that the US government was withdrawing its holdings of Bitcoin, the cryptocurrency plummeted. Therefore, the success was short-lived.

This purge caused FUD to spread throughout the market, causing words like “sell” and “bearish” to emerge as trending words in Santiment’s social trends.

However, according to the data provider on the Internet, good buying opportunities open whenever these words appear after the price of the crypto-asset falls and can cause the price to rise.

Is It a Good Time to Buy Bitcoin?

According to CoinMarketCap data; BTC price is trading at $27,403 at the time of writing. In the last 24 hours, the price of the cryptocurrency has fallen by 1%, while the trading volume has increased by 56%. This price/volume difference signaled an increase in market volatility. Despite the drop in prices, more transactions were being made.

However, new demand may be needed to generate the liquidity needed to trigger a higher price correction. Without it, the price of BTC may continue to decline. Evaluation of BTC price movements on the daily chart; it was found that distribution exceeds concentration.

At the time of writing, BTC sellers were controlling the market as the Negative Trend Indicator (red) of the Directional Dimensional Index (DMI) was above the Positive Trend Indicator (green).

BTC’s key momentum indicators were in low positions below their neutral zones at the time of writing. For example, the Relative Strength Index (RSI) was 41.34, while the Money Flow Index (MFI) was 47.33. Although the supply of coins has increased significantly, two key indicators point to a buying opportunity.

A first look at Bollinger Bands for BTC showed that the price of the leading currency touched the lower band of the indicators. This usually indicates that it may be a good time to buy a property if the price is selling low.

A divergence has been detected between the price of BTC and the Chaikin Money Flow (CMF) indicator. BTC price moved south while CMF was strong at 0.05 at the time of writing.

In general, when the CMF of an asset moves from the lowest price and begins to rise, a buy signal is issued if the price action lowers the price low in oversold areas. Therefore, this may be a good time to look into the coin.

Attention: Is Bitcoin Price Declining A Good Buying Opportunity?