BTC falls below 60K! Bitcoin's head and shoulders pattern complete, should you run or buy the dip?

Bitcoin has shown weak performance recently, falling below the $60,000 mark last night along with the tech sector's pullback. 10x Research believes that Bitcoin has completed a head and shoulders pattern, broken through important support levels, and advises exiting positions to wait for lower prices to buy in! On the other hand, trader Ali Martinez holds a contrary view, pointing out that Bitcoin is in an oversold territory based on technical indicators like RSI and MVRV, suggesting it is an excellent opportunity to buy at the dip.

Bitcoin breaks below 60K! Dow Jones Industrial Average rises, Nvidia drops over 6% to regain third place in market value

10x Research: Bitcoin Forms M-Top Pattern

Bitcoin continues to plummet, showing a double top M-top pattern! According to 10x Research analysis, Bitcoin has dropped below its support level of 63,379, forming a double top M-top pattern, which may lead to a further significant decline. Investors are advised to sell first and wait for lower prices to buy in!

Trader Ali: Buying the Dip

Trader Ali Martinez holds the opposite view, stating that based on technical analysis indicators RSI and MVRV, Bitcoin is currently in an oversold condition, making it a great opportunity to buy the dip.

RSI in Oversold Zone

Based on backtesting, in the past two years, Bitcoin's RSI has touched the oversold zone three times, resulting in BTC price surges of 60%, 63%, and 198% respectively. Currently, RSI is once again in the oversold zone.

Note: RSI stands for Relative Strength Index, which can be used to assess the strength of buyers and sellers during a period. RSI values range from 0 to 100, with higher values indicating a more active buyer's market and lower values indicating a quieter market.

MVRV Ratio at -8.96%

Since February 2023, Bitcoin's MVRV ratio has dropped below -8.40% four times, leading to BTC price increases of 63%, 100%, 92%, and 28%. Currently, with Bitcoin price below $60,000, the MVRV ratio is -8.96%, indicating a favorable opportunity to buy the dip!

Note: MVRV, Market Value to Realized Value, measures the difference between Bitcoin's circulating market value and realized value to assess market sentiment.

This article does not constitute investment advice. Please DYOR (Do Your Own Research).