Bitcoin is the most popular cryptocurrency with a wide range of use cases. Many crypto enthusiasts regard it as a market leader because rally shown in 2020-21. Since the beginning of this year, 2022, it has been in a downtrend, and still, it is continuing its negative sentiment even in November.
At the time of writing this post, BTC/USD is trading around $16,200 and around 1.3% down in the last 24 hours. Many experts suggest the news of protests in China due to COVID restrictions is a catalyst of this downtrend. Besides that, crypto markets were under selling pressure due to the FTX liquidity crisis, so all these negative sentiments have started the second wave of outflow from the crypto world.
In the short term, Bitcoin has been consolidating between $15,600 and $17,000. Candlesticks are forming in the lower Bollinger Band, thus suggesting consolidation for the next few weeks. $16K is a crucial level of BTC; if it breaks this level, it can be in a long-term downtrend, but if it sustains over this level, it may consolidate or change the momentum after a few months.
Most other technical indicators are neutral at this time, and MACD generates green histograms with good volume that may suggest a change in momentum for the short term. However, we have to analyze the long-term chart to get a better view of the trend.
On the weekly chart, $18,000 was strong support but the bearish engulfing candle on the first week of November changed the momentum. Now it is taking support of around $16,000. If it breaks the level, it might come to the level of $10k. We do not think it is an ideal time to accumulate more coins if you have invested around the $18K level. If your portfolio is in the negative, you should hold it for the next five years. However, $10K will be a good time to accumulate BTC and average the price for the long term.
Indeed, crypto markets have been observing outflow in the last eight months after a bull run that suggests it will consolidate even next year. It is an accumulation phase, and you should not expect much return from the crypto market. Indeed, it is a risky investment for the long term, so you should invest the amount you can afford to lose. Bitcoin is a less risky digital asset which has the potential to replace gold. Please follow our website to get the latest update on Bitcoin.