Bitcoin is once again reaching a price range that may appear attractive to longer-term investors. After the previous decline, the market now offers room for gradual purchases, but at the same time, there is still no clear signal that the definitive bottom is truly behind us. The current situation is therefore not just about whether bitcoin is “cheaper,” but mainly about whether the market has enough strength to start building a new growth trend.
You might like: What is copy trading and how does it actually work?
Weak growth without volume puts bitcoin back under pressure
Bitcoin has returned to the bearish flag structure on the weekly chart and failed to reach the important resistance area near $88,000. This suggests that the previous growth did not have as solid foundations as it might have seemed at first glance. While the price appeared more stable in the short term, trading volumes remained weak. And it is precisely volume that is one of the main indicators in technical analysis of whether real demand stands behind a movement, or just short-term optimism.
When growth is not supported by higher market activity, it often quickly loses momentum. Similar bounces can give investors hope, but without confirmation they tend to be rather fragile. This is why the scenario of a deeper correction toward the area around $52,000 is opening up again. This is a level that much of the market is watching today, which in itself can be a warning sign. Nevertheless, it cannot be ruled out that bitcoin will actually approach this price in the coming weeks or months, especially if selling pressure continues to prevail.
Read more: Tickmill broker review: Assets, platform and fees
DCA may make sense, but the market is not yet building a solid bottom
Current price levels may already be interesting for investors who work with the DCA strategy and do not want to wait to hit the absolute bottom precisely. Bitcoin is likely in a broader buying area, but rather at its upper edge than at a point that could be identified with certainty as the final bottom. After a more significant decline, the market tends to be psychologically enticing because some investors feel that the worst must already be over. However, the history of bearish phases shows that bottom formation often takes longer and proceeds much more complexly than with one quick turnaround.
From the perspective of Wyckoff theory, bitcoin could be going through gradual accumulation rather than an immediate return to a bullish trend in the coming months. Such development usually includes false moves, sharper washouts, returns to the previous range, and repeated testing of supply and demand. Only longer consolidation and a more readable structure can show whether the market is truly building a foundation for further growth. For investors on BITmarkets, it may therefore be crucial to monitor not only bitcoin’s price, but also volumes, market structure, and confirmation that a short-term bounce is beginning to turn into real accumulation.
Don’t miss: BITmarkets – BTMT token will improve cryptocurrency trading
