Many traders and investors are trying to comprehend whether Bitcoin (BTC) can once again head lower or whether the bottom is already in place. It seems like this never-ending discussion is gaining impetus once again. The question is whether it is the right time to invest in Bitcoin (BTC) or not.
Is the Bitcoin (BTC) bottom in place?
When you look at the chart of Bitcoin, you will realize that it has tried to break three thousand dollars price. It has bounced back from those levels all the time. It clearly indicates that at the lower levels, it is experiencing strong support. Moreover, it is nearly 30% up from those levels. The quantum of 30% clearly indicates that the bounce back was no fluke. It has sustained around these levels for quite some time which shows that there is no incremental selling with it moving higher.
Thus, if you’re thinking of investing in Bitcoin (BTC) at the current levels, it is a good idea to invest close to $ 3000. That however also carries a risk in case this level breaks. However, it can be the safest to trade in this very year. Whether it will head high or trade at current levels is a matter of speculation.
One thing which you need to keep in mind definitely is that you should not invest in Bitcoin (BTC) at the current levels. If you’re investing at 30% higher than the bottom, it can be a risky trade. You have to wait for a day before investing in Bitcoin (BTC). Ideally, you should invest close to $ 3000 to ensure that you are as close to the support as possible. However, you should keep a strict stop loss to limit the losses, in case the support is broken as well. While the support has been made but it has risen swiftly from those levels which is why investors and traders need to wait it out.