Bitcoin is one of the most popular decentralized cryptocurrencies in the world. After its popularity, it has been facing issues with scalability and a low TPM rate, which impact the price of the BTC. Besides that, Ethereum’s Merge upgrade influenced the price of BTC because Bitcoin is currently running on Proof of Work consensus, where miners need expensive hardware to mine BTC.
The process consumes a lot of energy, which might not be sustainable in the long term. Many retail investors think Bitcoin will not survive for long, so Ethereum is a safer investment. Besides that, the crypto industry has been observing an outflow due to global circumstances that might continue into next year.
However, many market experts believe Bitcoin will replace gold in the future. Gold mining is also very costly, so it is the best alternative running on a decentralized model. Bitcoin is a time-tested solution and must be treated as an asset for long-term growth.
It has a wide range of use cases, so many financial institutions and merchants accept Bitcoin and treat it as a decentralized digital currency for their businesses. Elon Musk also backed Bitcoin as a ‘People’s Currency,’ so Bitcoin community members are optimistic about the future potential.
While writing, BTC was trading at around $19K. It has been strongly consolidating between $18,500 and $20,500. Now the candlesticks are forming around the baseline of the Bollinger Bands that lacks volatility. Most technical indicators are neutral.
We do not think Bitcoin will break the support, but you should maintain a strict stop loss. Indeed, it is the right time to invest for the short term because if there is any trend reversal, you will get a short-term profit. Read more about our BTC predictions before making any final decisions.
In the long-term time frame, candlesticks have been forming lower lows and lower highs in the lower range of the Bollinger bands, suggesting bearishness. If it breaks the support, it will reach $10K, which could be the right time to invest for the long term. Before that, if you believe Bitcoin will reach $100K, then do not wait, start accumulating the coin for the long term.