TechDev, the analyst took to Twitter to make his opinions about this BTC price dip public about Bitcoin impulses and corrections over the cycles’ bull markets based on new address trends on-chain.
Bitcoin hit a new all-time high in November after exceeding a value of $69,000. However, the asset has suffered a drawdown of 40% from that time, which has caused extreme fear sentiments in the market for both Bitcoin and altcoins.
According to TechDev’s tweets this BTC price dip is nothing to be worried about. The analyst is known for being optimistic about the state of Bitcoin and its price trajectory.
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How I see #Bitcoin impulses and corrections over the cycles' bull markets based on new address trends on-chain.
At least one more upward impulse to come in my opinion before an impulsive downtrend (bear market) begins. pic.twitter.com/09dQr83xO9
— TechDev (@TechDev_52) January 17, 2022
While analysing new wallet addresses in comparison to price behaviour, TechDev showed that 2021’s scenario of new address numbers performing lower highs while price made higher highs was far from unique. He stated that in 4 out of the 6 corrections we saw divergence where price made higher highs and new addresses made lower highs.
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In 4 out of the 6 corrections we saw divergence where price made higher highs and new addresses made lower highs. pic.twitter.com/J4A22PCNC0
— TechDev (@TechDev_52) January 17, 2022
The low BTC volume has made headlines with concerns that the asset might experience overly significant moves due to a lack of liquidity. The analyst added that the price movement relative to Fibonacci levels has maintained well within historical norms, and therefore, no reason to assume that another all-time high will not suffice before a bearish phase ensues.
He concluded his thoughts about the BTC price dip:
“our current correction (since Feb 2021) is taking place between the same two cycle log fibs as a running correction has always taken place, with locally declining volume and new addresses”.
It has been realised that the interest of retail investors has greatly fallen away from Bitcoin in the last year, while seasoned traders remain primed as leverage is still close to all-time highs and institutions have started re-entering the market.
In Q4, TechDev started highlighting trends in Bitcoin’s relative strength index (RSI), which indicated that a higher all-time high was in the future. RSI is traditionally used to determine how oversold or overbought an asset it at a certain price point. The metric is used very often for bitcoin.
According to data from TradingView, RSI continues to be oversold for BTC/USD. This is something that in previous periods has unanimously resulted in a reversal and upside price pressure.
More News about Bitcoin here!
Image by Fathromi Ramdlon from Pixabay
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