As we’ve all seen in the previous days, cryptocurrency bulls are in for a lot of happiness. Yesterday, Bitcoin, the world’s most famous cryptocurrency managed to break the $47K resistance level – a level that many bearish traders simply couldn’t imagine seeing anywhere near the foreseeable future. Does that mean that the bear market is finally over and we’re moving on to new all-time highs or is it just a temporary break-out? Only time will tell, but we’re here for you with some of that sweet analysis you all love 🙂
Is the cryptocurrency market finally recovering?
We all know that there have been a lot of mixed emotions around the crypto world lately. With all the bearish news in the previous months, it seemed like the markets were possibly heading to a boring place (the type of place bears usually love), that could take months, or even years, as some of the most vocal bears were saying. However, with today’s charts, it seems like that period is finally over!
Let’s head over to Tradingview for some of those charts we know you all love!
BTC/USD chart, 2h Candles
As you can see, at the time of writing this article the price is now sitting at just around $46K USD. However, just a few hours ago the Bitcoin was able to break the huge resistance point at $47K – and it’s most likely just a matter of time until it breaks that again and surges towards perhaps even a new ATH!
Although most of our portfolios are in the green right now, let’s not get our hopes up too quickly – we’ve all seen how volatile the crypto markets can be. A lot of investors took some profits on the way up, which might not be a bad idea after all. Who knows where the markets are headed next, and why blame someone for just taking precautionary measures?
The general consensus in the trading world is that you should HOLD when the prices go up – because when people sell, that can impact the asset’s price. However, with those huge fluctuations we’ve been seeing lately, it might just be a good idea to take a small percentage of profits along the way. This is, in the end, a decision that comes down to how much risk every trader is willing to take.
The Bitcoin appears to be holding strong over the 200 day SMA
BTC/USD chart, 200-day SMA
Many traders consider the 200 day Simple Moving Average a crucial indicator when it comes to identifying whether the market you’re in is a bullish or bearish one. The 200 days SMA shows you what the general trend is, covering about 40 weeks of trading. Considering that the trend line is showing us an average of the price over a long period of time, it’s generally thought to be one of the most frequently used and reliable indicators.
As you can see in this chart, the Bitcoin had no issues surpassing the 200-day SMA and stayed well above it, and it is still currently trading above that line. This seems to be the confirmation we’ve all been waiting for – that the crypto markets are finally going towards the previous all-time highs. And, who knows, with perhaps a bit of luck, we’ll see crypto prices even break these levels and reach new ATHs!
Should I buy the Bitcoin now? Is now a good time to invest?
These seem to be some of the most frequent questions everyone is asking these days. Whether on Reddit, Quora, or other cryptocurrency communities, it seems that the crypto world is getting more traction, and thus, attracting hundreds of thousands of new users to the community.
As with every bull run, you always get a huge influx of new users coming in and wondering – is THIS the road to $100K? Will I get to be a millionaire by the end of this year? The short answer to this question is: nobody knows. Anyone who tells you with a 100% guarantee that the Bitcoin is crashing/surging to 100K probably has no idea themselves what they are talking about.
Of course, with all the great news and the price surges, we’re most likely heading towards a bull market that can take us to new all-time highs. Keep an eye on some of the most popular cryptos out there – BTC, ETH, ADA (and many others). Good times seem to be coming for those communities.
However, as we’ve all seen in the last months, everything can always go downhills too – so keep that in mind. Plenty of traders could very well be selling some of their positions at this time, and waiting for the markets to go down 10-15% to get back in and make some quick profits.
The main advice we can provide you with here is – always invest what you can afford, and choose carefully what type of trader you think you are. Do you have an appetite for risk? Are you willing to go long on the Bitcoin now – perhaps even using a bit of leverage? Or would you rather just HOLD and wait to see if the Bitcoin manages to stay above the 200-day SMA and break new levels?