Purchasing of digital currencies during the dip suggests that the sentiment has been improved to a great extent.
One of the top three richest men in Mexico namely Ricardo Salinas Pliego has advised investors that they shouldn’t invest money into ‘fiat’. He further advised that not even fiat-based trades are good for the investors at this time. He argued that fiat currencies are all false and are only lies and surmises. He then recommended people have faith in digital currencies and encouraged them to put their funds into Bitcoin.
On the other hand, crypto analysts are looking very optimistic about the upcoming year. They believe that 2022 is going to be yet another eventful 12-month period for the Bitcoin economy. For instance, an analyst who is known by his made-up name “Decodejar” has a bullish viewpoint for 2022. He firmly believes that US$ 100,000 = 1 BTC will be surpassed in 2022. In addition, he said that Bitcoin will further reach its conservative value of US$ 190,000.
It is now important to see where Bitcoin will end its recovery stage before the expiry of 31st December 2021. Most importantly, whether Bitcoin is capable of taking its altcoin-pair ‘BTC/USDT’ to an appreciating high level, is a million-dollar question.
Examination of the Bitcoin/USDT pair shows that since 25th December Bitcoin is strictly sticking to its exponential moving average (EMA) for the past 20-days. Resultantly, this gives a strong indication that bulls for Bitcoin are holding the field while the investors continue to turn the dip to their advantage. This will in turn further mean that the bulls will attract more investors purchasing Bitcoins while the prices are lower.
Similarly, Bitcoin’s relative strength index (RSI) too has moved out of the red zone into the green zone. This further shows that a great advantage is there for Bitcoin bulls.
Experts believe if the dip is bought extensively and Bitcoin’s value becomes US$ 52,000, then it can surpass the $60K resistance level. At that moment, Bitcoin bulls will strongly defend the 60K level with valor and enthusiasm.
It is therefore essential for Bitcoin to attract more investors who would be willing to buy the dip. At the same time, Bitcoin cannot afford to go down below the price range of US$ 50,000. In the worst-case scenario, if the price does go below 50K level, then the bullish indicator for Bitcoin will vanish automatically. If this happens, then the value of pair of BTC/USDT will move into the resistance level of US$ 45,000.
So it is the Bitcoin bulls and buying of dip versus the $50K resistance level. Anything below the level of 20-day EMA will weaken the bulls and strengthen the bears. At that moment, Bitcoin bears would be at their advantage.