Is Buying on the Recent Dip a Smart Move? US Giant Bank Explains: “Until Bitcoin (BTC) Surpasses This Level…”

Following the sharp declines in the cryptocurrency market in recent days, some analysts expect the selling pressure on Bitcoin to continue and the price to test the $80,000 level.

At this point, Compass Point advises against buying on Bitcoin (BTC) dips until the $98,000 level is regained.

According to Decrypt, US-based investment bank Compass Point advised caution regarding buying on dips until Bitcoin regains the $98,000 level, which it has identified as the average buying price for short-term investors.

Compass Point analysts define the $98,000 level not as a random number, but as the average cost of buying Bitcoin for short-term investors.

At this point, analysts noted that Bitcoin recently rose to a two-month high of $97,500 but failed to surpass that level, falling back below $90,000.

Analysts interpreted the failure of short-term investors to surpass the $98,000 threshold as “reinforcing concerns that the BTC price may be heading towards a prolonged decline.”

“Last week’s rally was Bitcoin’s strongest recovery since it fell below the cost floor for short-term investors on October 30.”

However, it should be remembered that one of the defining characteristics of Bitcoin bear markets is the sharp sell-off that follows promising recovery rallies.

Consequently, according to analysts, Bitcoin’s inability to overcome this resistance could mean a correction towards $80,000.

Analysts stated that if Bitcoin experiences a correction reaching $80,000, “it would be easier to buy during the dip,” but warned that the risks associated with leveraged trading remain.