Is it a Good Time to Buy Bitcoin? Is This a ‘Buy the Dip’ Opportunity?

In the past few days, the Bitcoin price has been possessing extreme volatility, which has dragged the token to new lows. Despite a significant recovery, the bearish flags continue to haunt the token as the bears are restricting the price from securing the levels above $86,000. While some believe the price has begun to descend, the historical pattern suggests the token is at the edge of a massive explosion. 

The BTC price has been consolidating within a narrow range since the past couple of days, which could hint that the bulls could be accumulating strength to materialize a strong rebound. Interestingly, the token is consolidating in a similar manner that it did back in 2021; hence, if the price manages to trigger a decent rebound, the price could set up a strong ascending trend soon. 

The above chart shows the similarity between the 2021 bull run and the current price action. After a slight upswing, the price has begun to consolidate within a similar pre-defined range, and hence, a rise above the consolidation is expected to trigger a 2021-like bull run. However, the volume and volatility differ, which could cause some hindrance in the rally. 

Where’s the Bitcoin (BTC) Price Heading Next?

The recent price drop seems to have liquidated a huge cluster of longs, due to which the token may refrain from acute selling pressure for a while. More than bulls, bears appear to have been exhausted, and as a result, the fear of an extended price plunge remains aloof for a while. However, the short-term traders have already accumulated more than 35,000 BTC during the recent drop, which prevented the price from dropping below $82,000. Therefore, the Bitcoin price is expected to remain consolidated for the next few days. 

A popular analyst, Altcoin Sherpa, says that the Bitcoin price is expected to maintain a sluggish trend for some more time. The price could remain within a predefined range and slowly ascend above $90,000 by the mid of the second quarter. Although the price may break above the resistance of $92,000, the bears are expected to drag the levels back below $85,000. Therefore, it seems to be a good time to accumulate Bitcoin, as the price is believed to maintain an ascending trajectory and reclaim the higher highs.