Yesterday, the crypto leader closed the session down 9.8%. This digital asset has indeed experienced a fall following the publication of the CPI in the USA. Despite this, it remains in the range between $18,600 and $25,000. So there is no definite momentum on bitcoin (BTC). This leaves a lot of uncertainty about its trend.
Bitcoin (BTC): In a neutral trend?
After the sharp drop from its all-time high, bitcoin (BTC) has been taking a breather since July 2022. However, this is not an actual trend reversal. Indeed, even though the downtrend seems to be stopping, bitcoin (BTC) is not bullish. On a daily scale, the crypto happens to be moving inside a range zone. This is the area between $18,600 and $25,000. Moreover, despite an average weekly variation of 10%, the BTC cannot manage to get out of it.
This could be explained by the lack of liquidity in the market. Indeed, we are in the middle of the month when most investors are in the Maldives relaxing. Which explains this indecision on the trend of bitcoin (BTC). Thus, even if the bears have liquidated their positions, there are not enough buyers to push the price up. As a result, the cryptocurrency leader by market capitalization has been in a “fall-bounce” cycle since mid-June.
BTC: Fear Index Suggests Buy
If we look at the Fear and Greed Index, the arrow points to 25. This indicates that there is still a feeling of fear in the bitcoin market. However, this is an opportunity for buy BTC since right now most newbie investors are selling their cryptos. This allows savvy investors to buy them at low prices. Then, since bitcoin is supported by a strong fundamental situation, an uptrend will be inevitable. Buyers will then have the opportunity to sell their BTC at a more attractive price.
At what price to invest? According to my analysis, the level below $18,600 would be very interesting to invest in Bitcoin. Why ? Because it is a major support created since July. Also, buying below support is a very smart trading strategy. Breakout traders place a lot of sell orders below this level. This leaves a lot of orders to be liquidated for large portfolios, which take the opportunity to open long positions.
In any case, it won’t be long before there is a clear trend for bitcoin. But for now, you can take advantage of its short-term volatility. All you have to do is apply a simple strategy: “buy at supports and sell at resistances”.
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