As the crypto market consolidates, crypto day traders increase the volume of their trades. In fact, this consolidation is the perfect time to cash in on predictable price actions. Bitcoin specifically started its consolidation phase in June 2022. To date, prices fluctuated between $24,000 and $18,500. Is Bitcoin a good buy currently? Let’s analyze in this Bitcoin price prediction article!
Crypto Market Performance – How are Cryptos doing?
The crypto market performance was not the best during 2022. The market cap of the crypto market started in 2022 at around $2 trillion, and is currently around $900 billion. That’s around a -55% hit on average for most cryptos. However, the stock market did not have the best year either.
Facebook’s shares also tumbled by more than -56% YTD. Credit Suisse is the talk of the financial town, with its shares crashing by more than -50% YTD. Bitcoin lost around -60% YTD, a performance very similar to the former companies. Crypto investors are still waiting for the detachment of crypto prices from the equity market, as it was formerly considered a hedge against falling stock prices.
Is 2022 bad for investing?
Well, if you were considering buying cryptos or tech stocks, 2022 was not the best. 2022 is looking quite bearish as the year nears to end. Many macro factors affected crypto and stock prices. Even currencies depreciated in value such as the Euro and the British Pound. In bear markets, professional investors turn into active traders. The markets are being slaughtered right now, and only active traders are managing to make a profit out of the current chaos.
Bitcoin Price Prediction – Good Time to Buy Bitcoin?
If you were a long-term investor who is looking to buy and hold for the next few years, you can definitely do so. Don’t forget to add a stop-loss price in case the market continues lower. However, if you are an active trader and looking to trade Bitcoin, the following analysis should help you a lot.
Bitcoin has been in consolidation mode since mid-June 2022. The current price is nearing the bottom of the consolidation trendline, which is around $18,500. While prices edge lower, it might be a good idea to place a buy order accordingly:
- Entry: $18,600 – $18,800
- Stop-loss: $18,000
- Take profit: $21,000
Where to Buy Bitcoin easily?
You can Buy Bitcoin on several exchanges. Here is a list that CryptoTicker suggests, taking into account the largest:
When trading CFDs, eToro is an excellent substitute for buying the actual tokens and trading the price discrepancies, which relieves you of the burden of worrying about the storage and security of your cryptocurrency holdings.