Bitcoin bulls continue to remain in charge and we are yet to see further upside in the market. However, we before we get into that let us talk about how you should be approaching Bitcoin or any other investment. There are two types of people in any market: traders and investors. If you are a trader you need to have the skill set to trade every move otherwise you will end up losing your coins and in the need you may have lesser number of Bitcoin than you started with. On the other hand, if you are an investor or someone who does not want to be around charts 24/7, you can look at the BTC/USD chart once a week and decide whether the price is oversold or overbought enough to buy or sell based on the RSI or the Stochastic indicator.
Consider an investor who had no idea what stocks to buy in the stock market but put their money in the S&P 500 (SPX) in the 60s. They would still have made an excellent return on their investment despite the numerous crashes we have seen in between from the oil crisis to the recent financial crash which led to the birth of Bitcoin (BTC). The same approach can work in this market for those that do not want to concern themselves with the nitty gritty of trading. In fact, it could be much more rewarding in this market compared to the stock market but it could also be riskier as most cryptocurrencies are not backed by any real businesses. The ongoing bear market is far from over yet which means that value investors might want to wait before they buy again for long term.
The 4H chart for BTC/USD shows that there might be opportunities to trade near term. We have now seen the price attempt to rise towards the top of the falling wedge. It has done this in a sluggish manner with prolonged sideways movement followed by a few big pumps to the upside. However, we could still see it rise towards $8,000. If it breaks higher than that then we could expect a retest of the 200 moving average. However, that does not seem very likely at this point. The ETH/USD chart shares the same outlook and is expected to outpace BTC/USD if the market continues to rally higher. Meanwhile, the EUR/USD forex pair has printed a double bottom which bodes well for the entire cryptocurrency market. While the market has room to rally for now and the bulls remain in control, it is important to note that the market is close to finding a local top and we might soon see a correction when the ongoing move comes to completion.