Bitcoin (BTC) and Ethereum (ETH) have undergone a crash. The overall market has suffered a massive fall that matched the May 19 correction intensity. With that, the crypto space fractured its long-term bullish setup. That left traders confused as cryptocurrency analysts projected bullishness towards the 2021 end. Nevertheless, let us analyze the current developments and whether you can buy the market dip. While writing this content, Ethereum and Bitcoin declined by 8% and 11%, respectively.
Bitcoin consolidates within the $55,000 – $60,000 range less than two days ago. The value area was significant as it comprised the highest Bitcoin cluster, with more than 2.3 million $BTC moved within the range. Nevertheless, the digital currency hardly held the level, plummeting towards the $42,000 lows on the price chart. Bitcoin remains within its second support range at $48,000 – $50,000 at the moment. Moreover, the market sentiment shows that crypto has not touched the bottom.
Yesterday, AMBCrypto revealed 39,000 Bitcoin re-entering trading exchanges. At that time, a concealed bullish thesis developed. The narrative appears canceled for now, while spot exchange inflows remain low. On-chain fundamentals are contradictory as bullish thesis still emerge, though price charts depict no bullishness as they restructure.
Bitcoin, Ethereum; A New Bearish Phase?
Before Q4 2021 started, most market players expected Bitcoin to hit $100,000 and ETH $10,000 before year’s end. Nevertheless, we may have watched this year’s ATH at the moment as the current crash might translate to a massive bearish phase.
Bitcoin has bounced off from its bottom support for some time. However, BTC hit the footing within the past few days. That way, BTC now broke its ascending channel formation on the daily chart. Ether mimicked Bitcoin’s moves, losing the $4K crucial support barrier.
Should You Buy The Dip?
Bitcoin has seen its massive correction since May 19 at 22%. Moreover, the altcoin may not have attained its lowest level. The price chart might see BTC falling further, retracing beneath $42,000 in the upcoming trading sessions. On the other hand, Ethereum can suffer similar losses, hitting $3,200 in the coming weeks or days. Dip-buyers need to stay attentive for entry levels.