Bitcoin (BTC) Price Relief Rally Likely As ‘Buy The Dip’ Calls Surge

How Will Bitcoin Price React To FOMC Meeting?

The Bitcoin (BTC) price has come under strong selling pressure a day before the FOMC meeting begins on Wednesday, May 1. As of press time, Bitcoin is trading at 5.4% down $60,189 with a market cap of $1.19 trillion.

Bitcoin Price Rebound Likely As Buy The Dip Calls Surge

With a nearly 6% Bitcoin price drop in the last 24 hours, there’s a very high level of fear, unrest, and doubt (FUD) among traders which suggests that the BTC relief rally could be around the corner.

In a recent analysis, cryptocurrency expert Ali Martinez highlighted a significant trend concerning Bitcoin’s price dynamics. Martinez pointed out that the last time Bitcoin tested the 100-day Exponential Moving Average (EMA) with the Relative Strength Index (RSI) dipping to 36 was in late January, which subsequently triggered a substantial price rebound. Now, Bitcoin finds itself once again at these critical levels.

Courtesy: Ali Martinez

However, Martinez cautioned investors to be vigilant, suggesting that a sustained close below the 100-day EMA could potentially indicate a downward movement toward the 200-day EMA, which is at the $52,000 level.

In today’s development, the BTC price took a dip under $59,000, however, quickly recovered above $60,000 once again. According to insights from on-chain analytics firm Santiment, Bitcoin experienced a drop to $60,000 for the first time since April 18th, attributed to resurfacing concerns about inflation in the United States. This downturn has coincided with a notable increase in mentions of Bitcoin and calls to “buy the dip,” indicating a resurgence of polarization among traders in the market.

Courtesy: Santiment

A Poor closing to April

Bitcoin’s performance during the last month of April was the worst since the FTX collapse back in November 2022. In April, the leading cryptocurrency experienced a significant downturn, dropping nearly 16%. This decline followed a surge in enthusiasm for US spot Bitcoin exchange-traded funds (ETFs), which had previously propelled the token to a peak of nearly $74,000 in March.

Despite high anticipation, the debut of Bitcoin and Ether ETFs in Hong Kong on Tuesday did not generate the expected momentum. The trading volume for these six vehicles amounted to $12.7 million on the first day, a substantial figure locally but notably lower than the $4.6 billion achieved by US products upon their launch in January.

The post Bitcoin (BTC) Price Relief Rally Likely As ‘Buy The Dip’ Calls Surge appeared first on CoinGape.


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