Bitcoin’s acceleration in the past few days has brought BTC closer to the $ 30,000 price from the previous $ 20,000 ATH. After 2 years in the bear market, Bitcoin seems to be making a move, and unlike the 2017 bull rally, this time it is increasing real demand, not FOMO that raises the price.
While this is true, it is predicted that Bitcoin will see a correction at some point. So the question is – Is it actually time to make a profit? $ 27,000, $ 29,000 or $ 30,000? This content tries to address exactly this question ..
Is it time to make a profit on Bitcoin?
The following approach has clearly highlighted the overly leveraged indicators. For example, the RSI was in the overbought zone while the Stochastic RSI was in the overbought zone.
However, the price showed that it had crossed the 1.618-Fibonacci level and the cryptocurrency could now reach the 2,272 and 2,414 Fibonacci levels at $ 28,258 and $ 29,783 respectively.
Clearly, a retreat seemed likely, however, at the time of writing, the price seems to be ignoring it and made sense, especially because of the capital flow from the corporate sector to the market.
In a nutshell, technical analysis suggested that there should be a pullback and showed that in the event of a drop it would drive BTC to $ 21,200 or the previous ATH to $ 19,666. In the worst case scenario it could drop as low as $ 18,000, but that seems unlikely.
Foreign exchange reserves can also provide some insight into what might happen. If this metric is high, people may sell and hence decline. However, if it is low, it may be the opposite.
At the time of writing, the decline of BTC reserves on exchanges has come to a standstill, especially if Bitcoin continues to rise and touches $ 29,000, with the possibility of the metric coming back soon.
It was also seen that the spot reserve increased. So is it up or down?
Ki-Joung Yu, CEO of CryptoQuant, said:
BTC exit from whales is a strong bullish signal. Otherwise, it tends to decline as whales tend to benefit from retail investors. We need more foreign exchange outflows from whales… I’m still very optimistic about BTC in the long run and I think it will break $ 30,000 soon. “
However, he added that we should consider this as “a small bearish signal that explains why it is difficult to break $ 28.5k”.
Buying it now will be extremely risky because Bitcoin can go above $ 30,000 and fall further and stay there for a while. Therefore, it is recommended that you take precautions rather than short-term investments at these levels, but only if you plan to hold them for at least 2 years.
All in all, if you bought Bitcoin for $ 10,000 or $ 15,000 or even $ 20,000 and you haven’t sold it yet, it might be a good time to make a profit. However, if you plan to keep your BTC for the long term, you should not sell here.