Most of the new investors who come into the market after the 2020 crash have seen only the market’s upward momentum, and now they are in huge shock because their portfolio is in the red. There may even be a two-year bear period after the two years bull period.
New investors are worried because of their first investment in Bitcoin. Due to US Fed tightening monetary policy, supply chain issues in China, and the Ukraine-Russia conflict, we can find a selling pressure in the market. In most cases, new investors are selling in panic, whereas savvy investors are now buying BTC for the long term.
Cryptocurrency and tech stocks are risky assets, and they are very volatile, which will continue until inflation comes into control. If you have not invested, it is the right time to start your investing journey. The volatility may increase in the upcoming days because of high inflation and rate hikes.
After the US Fed hike announcement, all the cryptocurrencies were down, led by Bitcoin. BTC has broken the support level of $35K, and now it is trading at almost $31K.
On the daily chart, it has been consolidating within a range of $40k and $35K. That is why we think $40K will be a strong resistance level at this point, and it may not break this level in the next few months.
The MACD indicator is down with red histograms on this chart, and RSI is in the oversold zone. After the red engulfing candle, we can find two consecutive green daily candles around the lower line of the Bollinger Bands.
We think it is a sign of recovery for the short term, and since Bitcoin is the largest cryptocurrency, you can invest now for the short term. Read our Bitcoin price prediction to see if the prices will fall further or not!
After forming higher highs, BTC has been in the downtrend since November last year, but now it has reached the support level of around 30K. We think it may not break this level now, and it will consolidate in the short-term range. All indicators such as MACD, RSI, and Bollinger Bands reflect bearish sentiment on the weekly chart.
Please note that the US Fed will hike rates three or four times this year, and thus we can find short-term corrections frequently on the chart. Because of regulation, crypto markets are most likely to be hit by inflation.
However, based on the technical and fundamental point of view, we think it is the best time to accumulate more Bitcoin and sell it in the long term.