Despite the bad start of the year 2022, cryptocurrencies are still striving. Many crypto projects have their goals set and deliveries soon. However, the November 2021 crash took a toll on the entire crypto market. Bitcoin reached its peak at around $68,000 but crashed all the way to $32,500. Many traders and crypto investors got demotivated and became wary of cryptos. Is Bitcoin price up still? Can you still buy BTC today and make good returns on your investments? Let’s find out and lay out the perfect trade setup 😉
Bitcoin Crashed by more than 50%! Why is this GOOD?
When cryptos become hyped, their prices become inflated. This is very normal, especially when uptrends are in place. Since Bitcoin price is purely derived from supply and demand, buyers and sellers have a big role in future BTC prices. When cryptos become hyped, prices soar in valuation without any fundamental backing. Examples of such implied advancements are increased adoption and crypto policies. If none of those factors contributed to price increases, there will most likely be an adjustment lower.
Those adjustments usually bring back prices towards the average uptrend lines or support areas. The reason for that is because hype in general fades away after a while. When hyped buyers stop buying, sellers become much more, bringing prices lower.
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Bitcoin Price UP – is BTC price STILL on an uptrend?
If we take a closer look at figure 2, we can clearly see how prices picked up after the crash. When BTC price reached the strong support of around $33,000, prices reverted and started a medium-term uptrend. The recent crash that brought Bitcoin prices from $48,000 to $39,000 was simply a retracement back towards the average uptrend line.
Is it good to Buy BTC today?
The current price of Bitcoin happens to be on the bottom uptrend line of the parallel channel. This represents the perfect buy price, even if prices proceed to go lower. This is of course assuming that when you place a buy order, you also place a stop-loss order as well. Here’s a setup that can be placed today.
- Entry: $40,400
- Stop-Loss: $39,365
- Take-Profit: $43,524
- Risk/Reward ratio: 3.03
