<div id="readability-page-1">Since Donald Trump took office, Bitcoin’s price action has been witnessing enhanced volatility following the post-election rally. While BTC has managed to break the psychological resistance of $100,000 for some brief periods, the lack of clear regulations and market uncertainty-driven retail panic sales have contributed towards price reductions. While the subsequent panic selling by retail investors has become more frequent, significant Bitcoin inflows have been recorded by Whales and institutional investors, indicating their preference for buying at the dip. The enhanced periodic participation of Whales in the market has helped to stabilize the market, infusing buying pressure that may be helpful for retail investors in the short to medium term. <p>The notion of Whale and Institutional investor hyperactivity has been confirmed by the significant inflows in the major holder wallets, as a prominent analytics platform has revealed that over 31,226 Bitcoins with a valuation of over $3 billion have been moved in some of these wallets on February 4. As this heavy acquisition continues, the market is gradually adopting a more proactive role, indicating the extension of buying pressures towards retail investors as well. This move will be particularly important to getting over retail fear, uniquely positioning them to align with Whales to adopt a more proactive Buy at the dip methodology. However, this calls for a cautious approach from retail traders as avoiding market divergence will become the key.</p><br/><strong>A rally on the horizon?</strong><br/>While Trump’s win at the US Presidential Elections and the subsequent inauguration led to significant market rallies, the momentum has been lost, at least for the time being. While Trump has been vocal regarding his support for Bitcoin, also directly becoming a stakeholder in a Bitcoin ETF, few meaningful regulatory or reformatory announcements have been delivered from the Oval Office so far. As things stand, the traders’ sentiment at the market seems to be in limbo, while Whales and Institutional Traders are leveraging the recent drop as a unique opportunity for averaging purposes. At the current state, the market does not show any significant buying pressure from the retail investors, however, the stance is completely opposite for Whales.<br/><div><div><p>Crypto Tracker</p><p><img width="124" height="15" src="https://imageproxy.pbkrs.com/https://img.etimg.com/photo/105830509.cms?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://img.etimg.com/photo/105830509.cms"/></p></div><div><p>TOP COIN SETS<i></i></p><div><p>Crypto Blue Chip - 5</p><p>-0.26%                         </p><p>Buy</p></div><div><p>NFT &amp; Metaverse Tracker</p><p>-3.06%                         </p><p>Buy</p></div></div><div><p>TOP COINS (₹) <i></i></p><div><p>Ethereum</p><p>232,068 (<span>-0.24%</span>)</p><p>Buy</p></div><div><p>Bitcoin</p><p>8,287,784 (<span>-0.57%</span>)</p><p>Buy</p></div></div></div><br/>For instance, recent data shows that wallets that held less than 100 Bitcoins were reduced by over 1.38 lakhs in February. This indicates that the retail owners of these wallets had either purchased Bitcoin during the previous Bullish momentum or earlier and have now abandoned their hopes of making profits owing to the subsequent volatility in panic. While the consolidation phase seems to have come to an end, only minimal purchases are to be expected in the short term, however, a bullish reversal would require a clearly defined governmental role in terms of policies or reformations for the short term. While historical data suggests that BTC tends to witness trend reversals at these points, the corresponding aspects in the past have never been more complex than the present.<br/><br/><strong>Opportunity for retail traders?</strong><br/>While Baron Rothschild’s ingenious idea of buying at the dip is widely accepted as a viable strategy, it is important to understand the differentiating levels. With Bitcoin showing early signs of recovery at the time, it's important for retail traders to closely monitor the market for further indications. While signs of a rebound are present, it is important for retail traders to show restraint and do their own due diligence before making the final decisions.At the time of writing this article on February 16, Bitcoin is being traded at the valuation of $97,116, down from the $100,000+ levels from earlier in the month. With inflation cooling and the Fed’s unchanged policy on the rate cut, it provides a positive atmosphere for Bitcoin going forward. It is important to understand that Bitcoin’s long-term prospects remain positive however, for the short term, Bitcoin has an immediate support level of $94,031 and a resistance of $98,851. If BTC manages to breach and sustain the resistance levels, it could commence an upward movement towards $99,000 and beyond. However, if it breaches the support level, the price action could once again test the $91,000 level as secondary support. However, retail traders looking for short-term gains must do their own research before making any decision, however, traders looking for long-term value creation could leverage the overall volatility to make gains. Furthermore, more aspects will likely impact the market uncertainty, but reformatory or regulatory announcements in the near future from the White House could propel Bitcoin over the $100,000 level, making further inroads.<strong>Future outlook</strong><br/>As mentioned before, Bitcoin’s long-term future remains bright with enhanced government participation from all corners of the world. While the momentary absence of a clearly determined regulatory and reformatory framework has been offering adversities to the price action, they are expected to remain periodic. The general market sentiment, especially on the backdrop of increased governmental and institutional investors’ participation remains highly positive for the long term — an aspect that may drive Bitcoin’s future and make it a multibagger in the upcoming years.<p><em>(Attributed to Roshan Aslam, CEO &amp; Co-founder of GoSats)</em></p><p><em>(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)</em></p><p></p><p><em>(You can now subscribe to our ETMarkets WhatsApp channel)<br/></em></p><br/><em>(You can now subscribe to our ETMarkets WhatsApp channel)<br/></em></div>

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<p>Bitcoin's recent price drop presents a buying opportunity for retail investors, despite increased volatility and panic selling. While retail participation is low, institutional investors and Whales are actively acquiring Bitcoin, stabilizing the market. Current trading shows Bitcoin at $97,116, with support at $94,031 and resistance at $98,851. A breach of resistance could lead to upward movement, while a drop below support may test $91,000. Retail traders are advised to conduct thorough research before making decisions, as long-term prospects for Bitcoin remain positive amid potential regulatory developments.</p>

Why Bitcoin's drop is an opportunity for retail investors