Home News Bitcoin Review: Is It A Good Time To Buy?

Coinposters

07 Jan 2022

Bitcoin Review: Is It A Good Time To Buy?

The Federal Reserve’s recent announcement on January 6 about rising interest rates as soon as March is still having a significant impact on bitcoin prices. The flagship cryptocurrency is still trading over the $42,000 mark set in early December.

This was a weekend action that sent shockwaves around the world on Saturday morning. Bitcoin prices, on the other hand, have been unable to hold above $52k since then, and a pattern of recurring support around the $45k level has surfaced many times in recent weeks.

In the same way, the marginal reaction to such support has dwindled over time. Before the Christmas break, the $52k level was retested.

After price action retreated quickly back to support, the bounces have become increasingly shallow, signaling that bulls are losing speed and may soon be unable to defend support. We’re currently looking at a descending triangle, and bearish breakdowns are common.

According to the Crypto Fear & Greed index, which has been dialed down to 15, there is a “tremendous amount of institutional demand on the sidelines.”

Low volume, according to some investors, might be the catalyst for an extended bearish market.

On-chain measurements reveal a general lack of activity, notwithstanding a mildly optimistic undertone in supply dynamics. Meanwhile, illiquid coins are flocking to dormant wallets in droves, and investor profitability and cyclical measures are turning gloomy.

With both bull and bear indications present, we predict sideways consolidation to continue into 2022.

Furthermore, at 39.6 million, the number of non-zero addresses is 40% larger than the peak reached at the end of the 2017 bull market, demonstrating that the number of users has increased over the last five years.

Given the parabolic nature of Bitcoin, predicting whether it will hold or break on its next test is impossible. This is a turning point, and it should be treated as such. If sellers pass the next test, the path to deeper breakdowns might open up rapidly.

Despite being one of the top outperforming mainstream financial assets in the world, you should assess your crypto investment strategy and understand what you’re getting into before investing in the pioneer crypto.

Don’t put money into something just to avoid missing out. Don’t risk more than you can afford to lose; enter at a reasonable price and distribute your money around to minimize risk.

Share

Buy/Sell at the best rates

Bitcoin BTC

-0.04%

Buy for

16575.30

Buy for

16575.30

Ethereum ETH

-0.04%

Buy for

16575.30

Buy for

16575.30

XRP (XRP)

-0.04%

Buy for

16575.30

Buy for

16575.30

Binance (USD)

-0.04%

Buy for

16575.30

Buy for

16575.30