If guided by wave analysis, BTC is at the stage of completion of the correction. Moreover, this analysis dates back to December 2018, when it was possible to exchange bitcoin for 3,800-4,000 dollars. Since that period, a five-wave price structure has developed.
Buy bitcoin for short term profit
Over a three-year chart (2018-2022), the second, fourth and current waves are 263 days long. As BTC became popular, each subsequent drawdown stopped at a higher rate than before. In addition, in 2018, institutional investors were already among the orders to sell bitcoin by counterparties. The arrival of such players largely contributed to the new historical highs of the course.
● January 14, 2021 – Bitcoin was valued at $38,400;
● April 15, 2021 – up to $62,800 was paid for BTC;
● November 3, 2021 – The king of the cryptocurrency world broke a six-month-old record with a 3 percent progress.
The average value of BTC for institutional investors is $30,000-$33,000. Today this course is almost overcome. On the Bitstamp site, you could sell bitcoin for $32,960. Experts predict huge volatility in cryptocurrencies, followed by a boom in trading in the US stock markets. If the resistance zone at $34,100 is overcome, one can hope for an opportunity to sell Bitcoin at a price of $38,000. Moreover, this scenario was likely until February, now the upward trend is already obvious.
Multiple Signals to Buy Bitcoin
Well-known investor Alistair Milne reports that the amount of bitcoins that are in different vaults for a long time can be very large. This is a clear sign that the downtrend is being held back by a small number of traders. Therefore, placing an order to exchange bitcoin for 32,000-34,000 dollars may be hasty. However, opinions alone are not enough for successful trading. Target audience requires signals:
● The NVT indicator demonstrates the entry into an open zone for purchases;
● The current situation is typical of April 2021, when Bitcoin fell in price twice in 10 days, but later returned to the previous rate and even overcame the maximum;
● The chart shows a moving average, which is great for a bounce up.
The probability of a takeoff after a drawdown to $32,000 is over 50 percent. Also, a medium-term stagnation before a bounce up or drawdown below $30,000 is quite predictable. Most likely, this scenario will take place over the weekend. Moreover, the next level of drawdown can bring the market down to $18,000-24,000.
With a positive outcome, you can hope for some news. The rise will resemble the “predecessor”, which took place in July-September last year. Accordingly, the speed of the pump appears. But on the eve of spring, the cryptocurrency world does not indulge in bright events. Therefore, until April-May, the possibility of exchanging bitcoin for 50,000-60,000 dollars is unlikely. Another thing is altcoins, which are gaining momentum:
● In the second half of this year, Ethereum will upgrade to ETH 2.0;
● The total capitalization of top tokens is approaching the capitalization of BTC.
Alternative tokens allow you to enter into smart contracts and create information products. Despite the market’s dependence on BTC, altcoins can easily be considered as an addition to an investment portfolio.
