Bitcoin has been on a rollercoaster ride in the last 30 days, with the market experiencing a growth of over 35.0%. On November 6, Bitcoin broke above its previous all-time high of $73,000+, and currently, it is trading nearly 30.95% above its mid-March ATH. However, between November 23 and 26, the market saw a drop of 6.92% – the first major correction since November 5.
The burning question on the minds of Bitcoin enthusiasts is whether it is too late to enter the BTC market. Let’s delve into the current situation and explore the best strategies that investors can consider at this stage.
Bitcoin Bull-Bear Market Cycle Indicator: What It Says
According to the Bitcoin Bull-Bear Market Cycle indicator of CryptoQuant, the BTC market has not yet reached its Extreme Bull phase. This suggests that there is still more room for growth in the Bitcoin market.
Bitcoin Historical Drawdowns in Bull Markets
It is common for the Bitcoin market to experience corrections during bull runs. In the 2017 bull run, the market saw a drawdown of nearly 22%. In 2021, there were corrections ranging from 10% to 30%. This year, the market has undergone corrections of 15% to 20%. Experienced traders view these corrections as opportunities to enter the market at lower prices.
BTC Buying Strategy Using Short-Term Holder Realised Price
CryptoQuant experts recommend buying BTC at the Average Cost Basis of Short-Term Holders. The Short-Term Holder Realised Price serves as a critical support level during bull runs, making it a strategic entry point for investors.
BTC Buying Opportunities from Open Interest Flushes
Rising prices attract speculative bets, leading to an increase in open interest. When speculative positions are liquidated, prices often drop, presenting buying opportunities for investors.
Analysing Bitcoin Net Taker Volume for Entry Points
The Bitcoin Net Taker Volume (24HMA) chart indicates that the Net Taker Volume index remains below $30,000,000. A Net Taker Volume below $30M signals peak selling pressure, creating room for a potential price rebound. This is seen as a prime time to enter the BTC market.
In conclusion, Bitcoin’s bull market offers growth potential and strategic entry points for investors. By analyzing market indicators and historical trends, investors can make informed decisions on when to enter the market for optimal returns.