Bitcoin (BTC) Price Rebounds 10% From Yesterday's Lows, Analyst Says It's a Dip-Buying Market

March 1, 2021 6:17 AM EST

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Bitcoin (BTC) is up nearly 5% to $47,800 on Monday to follow Asian and European stocks higher on the first trading day this week.

BTC dropped over 21% last week to mark the biggest single-week decline since March last year, when the pandemic-drivel selloff erased 33.5% of the total value. The price action briefly traded below the $43,000 mark yesterday to mark a new 3-week low for the world’s largest cryptocurrency.

Matt Blom, from crypto exchange EQUOS, believes that profit-taking activities have yielded a rotation lower in the cryptocurrency market. According to Blom, BTC may plunge to below $40k this week, but we are still in a dip-buying market.

"Profit taking has led to liquidations, which has led to more profit taking. $41,800 will be the first test for the bulls. The next level is $38,100. On the upside, a close above $45,000 will change the theme. $48,200 will be the first target to be chased down, and back above $50,000, everyone will forget last week ever happened and will be shouting for a return to the all-time highs," Blom said.

The second-largest cryptocurrency, Ethereum (ETH), is up 6.5% on the day after it sustained a drop of 26.5% last week.

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