“Why am I buying more bitcoin on this dip?”

While the price of bitcoin (BTC) has fallen by more than 20% in the last month, causing fear among some, others see this as an opportunity. One of them is economist and investor James Foord, who revealed why he is buying more in this scenario.

“Technical analysis suggests potential support levels, while fundamentals point to future demand from institutions, nations and younger investors,” the specialist emphasized. That is why maintains its long-term bullish expectations for digital currency.

Foord stressed that Bitcoin’s fundamentals have not changed. “The data suggests we will see trillions of dollars flowing into cryptocurrencies over the next decade,” he detailed. This projection is based in part on the growing number of large entities investing in the currency as a long-term store of value.

According to his view, There are two main factors that could be contributing to the current selling pressure.These are the refund of the bankrupt exchange Mt. Gox and the German government’s bitcoin sales that can continue.

“I don’t expect Bitcoin to take on a major role in the monetary system, at least not in the next decade, but there will certainly be some value in holding at least some Bitcoin,” he said. In fact, he noted that “recent sales in Germany have brought this fact to the fore,” drawing criticism from a member of parliament.

Even Donald Trump, candidate for president of the United States, supported the use of Bitcoin as a strategic reserve asset, as reported by CriptoNoticias. In this sense, Various politicians from around the world are on display defending the currencywhile young people and large institutions are interested in the market.

According to BofA research shared by Foord, crypto assets rank second only to real estate in terms of preferences among investors aged 21 to 43. As a result, he expects this market to slowly attract more capital over the next decade as large institutions and politicians take an interest in the market.

“There is plenty of room for significant appreciation as it becomes a staple in the portfolios of institutions, corporates and the next generation of retail investors around the world,” he sums up based on this fundamental analysis of the market.

Bitcoin may have marked the bottom of the fall

As for technical analysis, “we are within the range of a correction that I would expect in Bitcoin,” Foord said. As shown in the chart, the price is in a typical corrective wave after a significant increase, according to the Elliot Wave theory.

Despite this, the relative strength index (RSI) has remained calm, hovering around 50, indicating that the market is neither overbought nor oversold. “The last time this happened on a weekly basis was just before the wave rebound,” Foord said.

In view of this, he considers that $54,000 (USD) may have marked the bottom of this pullback. However, if selling pressure continues to increase, USD 50,000 is seen as the next major area of ​​support, according to Fibonacci retracement analysis.

“Below that, we may have to worry about the more immediate future of bitcoin, although I would still say it would be an attractive long-term buy,” he said, citing the fact that the currency “has gained social acceptance and established itself as a valid form of investment.”

In his view, “the current pullback does not represent the end of the asset’s rise, but simply a small correction in what will likely be a much larger bull market.” “I continue to believe that this Bitcoin sell-off is a great opportunity for investors,” he concluded.