The cryptocurrency market has been on a sharp free fall in the last 7 days, and it seems to have reached its explosive conclusion during yesterday’s trading session after China’s crypto crackdown. The sell-offs have resulted in discounted prices that present opportunities for traders to jump on the next potential bull market.
Is the market in recovery, or will it continue to dip?
Current performance indicates that some cryptocurrencies have bottomed out and are now recovering. For example, Bitcoin fell to a $30,001.51 low and has since recovered to above $40,000. The market has already experienced some recoveries thanks to investors buying the dips as the bearish downturn bottoms out. The price swings present opportunities and traders are wondering which coins are ideal for buying the dip and riding the next bullish wave. Here are some of the coins that are ideal for buying the dip.
Bitcoin has already experienced a major pullback after gaining support near $30,000. It is currently trading at $41,644, which is still a good entry point considering many investors plan to ride the bulls. A strong bullish momentum should push the price back above its moving averages, and the prevailing sentiment is that it will likely maintain its bullish trajectory. Elon Musk hinted through a tweet that his company would not sell its Bitcoin holding, thus an encouraging sign for investors.
Shiba is one of the younger cryptocurrencies, but it recently gained popularity thanks to its affordability. Its price is highly volatile, which means that buying it at its lower price points is a great way to take advantage of sharp price surges. It plummeted more than 50% this week and is currently recovering from its historic low at $0.00000631 and is currently trading at $0.00001093, which means it still has a lot of potential upside. Although it currently has an oversupply of tokens in the market, it is deflationary because 1% of the Shib coins in supply are burned every day, which means its supply will diminish over time. It is probably ideal for long-term hodling.
Dogecoin has already bounced back substantially after bottoming out at $0.21 during Wednesday’s market crash. It is currently trading at $0.41 and likely has some more potential upside courtesy of its supportive community convinced that Doge is going to the moon. Its bullish optimism is also riding on Elon Musk’s announcement of the Doge-1 space mission, whose payload will be funded using Dogecoin.
Litecoin underperformed during this year’s bull market and was hit hard by the bearish downturn which saw it drop more than 30% in the last 7 days. However, it is already in recovery mode after testing support near $150. The stochastic RSI indicates that it is still oversold, which means it has a lot of potential upside. LTC traded at $221 at the time of this press and the price is attempting to break above the 99-day moving average.
The volatile nature of the market warrants caution
Note that market correction will continue as long as there are no negative developments that can encourage more sell-offs. Institutional investors are the main reason for the market confidence that fueled the crypto rally we witnessed in the last few months. If institutional buyers pull out, it would spell doom for the market. On the flip side, an influx of more institutional buyers will be great news for the market, and might potentially lead to another strong bull run that will yield new all-time highs. Institutional investor participation will also provide a good base for traders to determine the new bottoms, thus facilitating more trading efficiency.