- Bitcoin is showing strong signs of recovery despite the recent market selloff.
- The price crashes were due to Turkey’s crypto ban and US Pres. Biden’s capital gains tax increase proposal.
- Bitcoin has surged from $47,000 to $52,000 and has switched from oversold to overbought.
After Bitcoin hit successive heavy blows since last week, the market is showing very strong signs of recovery. In fact, BTC’s price movement even suggests that this is the perfect opportunity to buy the dip while there’s still a chance.
Is it indeed the time to buy bitcoin now? Or has the bull market ended for the famed cryptocurrency? Let us find out in this CoinQuora Bitcoin price analysis.
Bitcoin Price Analysis (April 19-26)
Bitcoin plunged at least two times since last week, due to two bad news. Firstly, Turkey announced that it will ban cryptocurrency in its country. This sent BTC from about $62,000 to $50,900 in a single day.
Secondly, US President Joe Biden revealed his proposal to double the capital gains tax from 20% to almost 40%. If approved and implemented, persons who made huge profits from cryptocurrencies in the US will give twice more than they currently do to the government. This caused BTC to crash from $55,000 to $47,000.
However, we can see in the chart that BTC is recovering quickly after being knocked down twice. In fact, we can observe that it is already returning to its $53,000 support range with ease.
Is It a Good Time to Buy Bitcoin?
Bitcoin’s recent price crash was caused purely by fundamentals. For those who have been in crypto trading for a while, we can suggest that many of those who sold off their BTC were fairly new traders. On the other hand, those who are knowledgeable about technical analysis have bought the dip.
As seen on the Relative Strength Index (RSI), Bitcoin surged from being oversold to being overbought within 3-4 hours. It basically shows that a lot of traders have started to buy bitcoin en masse.
Is it a good time to buy bitcoin now? Definitely yes. The recent price crashes were only because of two bad news. Those who panic-sold their BTC were “weak hands”, traders like to call them. Technically speaking, many traders and investors are confident that Bitcoin is worth way more than it currently is today.
At the time of writing, Bitcoin is worth $52,226.60 per piece, according to CoinGecko.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.