Bitcoin has been in bear’s grip since last November. However, this risky asset has seen a global sell-off due to various reasons, but now it is in a prolonged consolidation phase, whereas many analysts thought it would be a V-shaped rebound.
The recent data shows that institutional investors have shown little interest in crypto assets because they are currently risky. Some cryptos, such as Bitcoin and Ethereum, have seen an accumulation of assets for the future. That means investors believe the market is yet to form a bottom for the next bull rally.
Most investors are worried about inflation and a potential recession, but most experts believe it will not happen. It means inflation will not have a long-lasting effect on the crypto markets.
If you focus on the short term, then it is a stressful time, but Bitcoin and other assets are alternative financing options for many people, and it will last long, so you should focus on the future potential of Bitcoin. In this aspect, it is the ideal time to invest for the long term. But make sure that you read our BTC price prediction before investing.
While writing this post, Bitcoin was up by 3% in the last 24 hours, and it is trading at around $19,840. In the short-term chart, BTC is in a consolidation phase. This consolidation is similar to that of April and May.
Although most of the technical indicators are bullish and RSI is steady at around 40, we do not consider it the perfect time to invest for the short term.
After making an all-time high of around $68.7K, it has been in a downtrend, forming support at around $19K. However, it does not mean traders can invest for the long term because most of the technical indicators are bearish currently, especially MACD is forming red histograms, and RSI is in the oversold zone.
Many analysts believe it is the bottom of BTC, which is very similar to Ethereum; experts do not encourage you to invest until the technical indicators and price action support this view. The crypto market is volatile these days, so you should pay close attention to the BTC price.