Bitcoin is the leading crypto coin in the world, which has slipped almost 75% from its all-time high. At the time of writing this post, Bitcoin is trading around $17,222, which is just above the 52-week low of $15,500. After the news of the FTX liquidity crisis in November, Bitcoin broke the support of $19,500. After that, it saw a brief outflow which ended up with a reduced value of $15,500.
On the daily chart, it seems like the BTC price is recovering from its yearly low and will reach the level of $20K, which will work as a resistance for the short term. The Bollinger Bands lack volatility, and candlesticks are forming in the upper range with positive MACD and RSI that suggest an uptrend, at least for the next few weeks. It is interesting to note that Bitcoin is getting higher trading volume on the daily chart, which might suggest a trend reversal. However, if it breaks the resistance, it will consolidate between $22K and $25K. Will it turn long-term bullish? Read our BTC predictions for a broader view.
On the weekly chart, BTC/USD has been trading in the lower range of the Bollinger Bands, which suggests a bearish trend for the long term, but the last three weekly candles are green, suggesting a short-term uptrend.
However, we cannot assume Bitcoin as a long-term bullish unless it crosses the level of $35K. We think it is a crucial level for Bitcoin because if it breaks the yearly low, it will come to the value of $10K, which will be a good time to accumulate more coins for the long term.
However, many crypto enthusiasts question the sustainability of proof of work-based Bitcoin that has a lower transaction processing rate. Indeed, there are many competitors in the market for Bitcoin, but it is the leading cryptocurrency and a time-tested solution. Many merchants and users prefer Bitcoin as a digital currency to purchase products and services.
If you have already invested around the level of $20K, it is not a time to invest or accumulate more coins. Wait for a few weeks until it shows momentum (upward or downward) for the long term. It is the right time to invest with a target of $19K and a stop loss of around $15K.
Most cryptocurrencies are trading at a crucial level that will suggest a trend for the next two years, so you have to check the price very closely and keep an eye on your portfolio.