Bitcoin dives once again and drags down with it the fate of all other cryptocurrencies

Bitcoin, along with several other cryptocurrencies has crashed again, aiding the continuous meltdown of the crypto market and then again swallowing its hard-earned US$1T mark. The Bitcoin price gained a mildly hopeful price momentum when Tim Beiko announced the probable launch date of the Ethereum Merge upgrade. The second-largest cryptocurrency, Ethereum, successfully helped the crypto market to cross the US$1 trillion mark after it lost most of its value during the crypto market meltdown. But as experts predicted, the current price rally is more like a relief rally, which is quite common under bearish market conditions. Currently, Bitcoin and other altcoins are suffering from a fresh decline after BTC failed to clear the US$24,000 resistance. Its steady decline has once again led the Bitcoin price to revolve around the US$21k range, and we can only hope that the Bitcoin price does not decline further down the US$20k range.

Almost less than a week ago, the flagship cryptocurrency was surging over its 40-day peak, but as news emerged that Tesla had sold more than 75% of its BTC holdings, the asset lost a significant amount of its value. The token struggled to maintain the US$23,000 resistance, but eventually, it led its way back to the US$21,000 range. Elon's move accomplished to spook investors once again, especially those who returned to the market after the price action of the digital assets started improving. Along with Bitcoin, the alternate coins have also started to decline and have entered the red zone once again.

Bitcoin Once Again Dragged Down the Broader Cryptocurrency Market

Bitcoin's fresh retreat has dented hopes that the crypto is about to return to its previous US$19k to US$22k range. The risk appetite in the investment community has also started to decline amid rising inflation, global economic downturns, and high-profile meltdowns of some of the most powerful crypto companies in the world, like Celsius and Three Arrows Capital. The crypto turmoil is about to take uglier turns due to the rising regulatory oversight of the industry.

Once again, the bears have gained strength over Bitcoin. Experts believe that its next key resistance will be near the US$22k mark. But if BTC successfully maintains this position, it might set the pace for more gains. And if the price rises above the US$22,500 range, then Bitcoiners might finally generate a substantial amount of profits from their investments. Currently, it is quite difficult to predict if Bitcoin will suffer more losses or not, but it is kind of quite evident that if the cryptocurrency experiences another freefall session, the investment community will surely lose its patience and led to another major sell-off season.

Should you buy this dip?

Bitcoin continues to remain a lucrative investment asset for those who still possess the risk appetite and can endure financial losses. Even though anticipation and speculation around the Ethereum Merge upgrade have spiked almost all major cryptocurrencies, volatility persists. Buying this dip would be a good strategy since Bitcoiners and other crypto fanatics continue to believe that cryptocurrencies are the future of the financial and economic markets, but investors should be extremely cautious before investing in any cryptocurrency at this point, especially Bitcoin.