Bitcoin is the leading cryptocurrency with a large market share in the crypto world, so the bullish movement of BTC suggests a short-term rally in the entire market. However, BTC broke the previous support of $20K after the declaration of the FTX liquidity crisis, and it has regained the previous support.
Bitcoin may seem to be a bullish rally, but retail investors must be cautious in this situation because many other altcoins regained this level which BTC is achieving now. It is not a time to come under FOMO and invest a lump sum with higher expectations. Before making any investment decisions in the current scenario, you must check our Bitcoin predictions.
At the time of writing this post, BTC was trading around $21,149, which has crossed the previous resistance decisively, suggesting it will continue to trade positively in the short term. Based on the technical indicators, candlesticks are trading in the upper Bollinger Bands with bullish MACD and RSI, which also indicates a positive momentum in the market.
After this short bullish rally, there may be a consolidation for the next few weeks within a range of $20K and $24K. However, it is an ideal time to invest for the short term with a target near resistance and a stop loss near the support level.
In November last year, BTC touched a 52-week low of around $15700. After that, it started a recovery and is now trading around $21K. On the weekly chart, it seems the BTC price will hold the support around $20K, but investors must maintain a strict stop loss. If Bitcoin breaks the support, it might turn long-term bearish and continue the downtrend for the next few months.
Though BTC has momentum and the price has surged around the level of $20K, we would not treat Bitcoin as long-term bullish until it decisively trades over $25K.
Technically, weekly candlesticks are forming in the upper Bollinger Bands, and most other technical indicators are bullish. However, it is difficult to predict how long it will sustain.
Experts predict a volatile year in 2023, so we can expect these rallies in both directions. Crypto investment can be more complex in such a situation, so if you pick the right trend, you can invest and book the profit for the short term. Otherwise, it would be better to invest for the long term when you get a lower price for your favorite crypto.
