Investors who jumped into the bitcoin bandwagon after it crossed $10,000 are dismayed now. BTC traded around the $8.9k since after the halving.
The weak US equity markets are bringing no cheer either. And since the Bears currently overpower Bitcoin, the Altcoins are following a similar bearish move.
Here’s why it is the right time to invest in BTC
In all our previous articles, we wrote about waiting for the right time to explore the Bitcoin sphere. Well, that moment is about to arrive. The volatility has reduced, even with the US stock indexes being quite volatile.
Bitcoin can be safely assumed to be bullish in the long term. However, the mad rush that drove BTCUSD higher was a bull trap to which a lot of investors fell prey.
TA paints a clearer picture of Bitcoin and its movement
Let us look at the fifteen-minute BTCUSD timeframe. Source: TradingView.com
- As of writing this article, BTC traded at $8911.40. The days’ range is $8,804.47 — $8,982.25. Although this doesn’t show a huge upside, the silver lining is the limited downside.
- The near term crucial support is at $8,851.19. The reduced width of the Bollinger Bands shows diminished volatility of BTCUSD.
- Bitcoin is trading just below the 20-period Exponential Moving Average. If it rebounds from this level and falls below, investors should wait for the drop to cease before investing.
- The correct entry point, or rather the time to buy Bitcoin, would be at the stage when it starts rebounding from the decline.
One must keep the buying quantity in a limit. And above all, one must not put a majority part of the investments in a risky instrument such as Bitcoin.
