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.
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.