According to recent analysis by Matrixport, dated April 9th, Bitcoin is presently undergoing a notable correction phase. The Stochastics Index, a key indicator for traders, currently registers at 25%, which is above the historically significant level of 15%. In previous instances when this metric fell to 15%, Bitcoin typically experienced a substantial rebound. However, the existing index reading suggests that a market recovery could be premature.
Compounding this caution is the lack of engagement from China, despite assertions from former President Trump regarding potential negotiations. Sentiment remains tepid as the U.S. stock market grapples with a 20% correction, yet there has been an absence of decisive support from the Federal Reserve or Treasury Department. As the crypto market navigates these uncertainties, prudent investors may reconsider whether this is indeed the optimal moment to “buy the dip” in Bitcoin, especially as the Stochastics Index does not appear poised to meet its critical threshold.