Many experts all around the globe believe that Bitcoin is set to outperform the stock market after a bottom of around 15K. However, it is not the time to begin a bull run due to inflation, FED’s hawkish monetary policy, and other global issues. It gives retail investors and long-term holders a good opportunity to accumulate coins for the next few years.
It also impacts the global stock market; buying Bitcoin can be a wildcard to break the trend in the next few years. People treat it as an asset like gold and bonds, so long-term holders will buy BTC instead of stocks to get a better ROI.
Though Bitcoin is a high-risk asset, it has outperformed many times in the past. That is why it is one of the trusted and popular cryptocurrencies. Crypto markets were the worst victim of global issues, inflation, and the Federal Reserve’s several major interest rate hikes. Still, Bitcoin can outperform in the long run because of its history and fundamental values, whereas Ethereum might correlate with the stock markets.
However, it is important to read the Bitcoin Price Predictions because the coin is undergoing very dicey price movements. Will BTC continue its downtrend?
The native coin of the Bitcoin network, BTC, is in a downtrend. At the time of writing, BTC was trading around $19,360, which is in the lower half of the Bollinger Bands. In July and August, Bitcoin was trading in the upper range of the BB, but on August 19, it changed the momentum, and now it is showing a downtrend.
We do not think it is an ideal time to invest for the short term, but risky traders can set a target near the immediate support, but it is not worth the risk. Moreover, most technical indicators show bearishness in the market. It may consolidate between $20K and $18K.
After hitting an all-time high of around $68K, Bitcoin has been in a downtrend, continuing the momentum in the lower half of the Bollinger Bands. If it continues the momentum, BTC will find support anywhere between $15K and $10K.
Though Bitcoin was treated as an asset, it may not be sustainable for the long term because of the Proof of Work consensus, which is more energy-intensive and costly than the Proof of Stake consensus used in Ethereum. If you find values in PoW consensus and Bitcoin, you can accumulate some coins for the long term.