Bitcoin Price Retests $90,000, Is This The Right Time to Buy BTC?

Key Insights

• Bitcoin price today stayed in the red amid a broader crypto market crash.
• Analyst hint at a further dip in BTC USD price ahead.
• The US Spot Bitcoin ETF has recorded two-day inflow streak through December 10.

Bitcoin price today has once again slipped near the $90,000 mark amid a broader crypto market selloff.

Meanwhile, it has weighed on the investors’ sentiment, who are anticipating a continuation of the volatile scenario in the BTC market.

In addition, the dip after the 25 bps interest rate cut by the US central bank has further sparked concerns over the potential reason behind the dip.

However, it’s worth noting that the slump also comes amid the institutional selling this week, which has already dampened the sentiment before the Fed rate cut.

Amid this, the market experts are hinting towards more corrections ahead in Bitcoin USD price. For context, an crypto analyst noted that historically, the recent market trends don’t align with the buy-the-dip opportunities.

In other words, a further correction in BTC USD price might help provide the opportunity to traders who are expecting to take advantage of the lower prices to enter the market.

In addition, Bitcoin often faces a highly volatile scenario post the US FOMC decision, which further explains the recent retreat.

Bitcoin Price Today Retests $90K Despite Fed Rate Cut

BTC price today was down more than 2% and exchanged hands at $90,100, and its trading volume stayed near the flatline at $67 billion.

The 24-hour high and low of the Bitcoin price were recorded at $94,477 and $89,459, respectively. Notably, the latest dip was initially triggered by BlackRock selling 2196 BTC on December 10.

Besides, the market experts were also anticipating a volatile trading for Bitcoin price today, given the historical performance of the coin post Fed rate cut decision.

Analyst Ali Martinez noted that Bitcoin USD has “consistently reacted negatively to FOMC meetings.”

The expert said that out of the last seven US FOMC meetings, BTC has recorded a correction six times, with only one “producing a short-term rally.”

Meanwhile, Martinez also said that Bitcoin Open Interest has slipped significantly in a separate post.

According to the expert, the Bitcoin Open Interest has reduced by half in two months, falling from $47.5 billion to only $27.5 billion.

Can BTC USD Slip Further, or is it a Good Time to Buy?

Despite the consolidation phase of Bitcoin USD price near the $90,000 mark, analysts are warning about a further dip in the asset.

Having said that, it seems that the BTC USD traders might be bracing for more pain ahead. According to Ali Martinez, the current dip in the flagship crypto may not be the bottom yet.

In a recent post, Martinez highlighted a key on-chain metric suggesting there’s room for further downside.

The on-chain trader realized loss metric, currently at -18%, hasn’t reached the -37% threshold that’s historically signaled a buying opportunity. Martinez noted,

“Some of the best buy-the-dip opportunities have appeared when Bitcoin’s realized loss drops below -37%,”

This suggests investors should tread cautiously, as the market may see more selling pressure before finding a stable footing.

While some see the current price levels as attractive, Martinez’s analysis implies there’s still uncertainty looming.

However, the US Spot Bitcoin ETF has regained momentum over the last two days, recording $151.9 million and $223.5 million, respectively.

This suggests that the institutions have regained confidence in the asset, which might help in a strong recovery in Bitcoin price ahead.