Tuesday, May 11, 2021
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Is It The Right Time To Buy Bitcoin Now?

Bitcoin (BTC) bearish trend is causing hindrance for crypto holders, which now is fading, enabling the BTC investment or buy bitcoin.

The price of the cryptocurrencies changes almost hourly. The same thing happens with the Bitcoin as well. Thus, the price of Bitcoin fluctuates, causing hard times to decide when or not to invest in bitcoin or sell bitcoin at the moment. It is often seen that people miss out on a suitable time to trade bitcoin due to confusion and lack of market predictions.

Stating of the cryptocurrency market predictions, Bitcoin (BTC) in particular is facing bearish conditions lately. Earlier, it has been predicted that the Bitcoin price will shoot beyond the $10,300 support level by 2020. While on the contrary, it has been seen that Bitcoin could not go beyond the expected. It is believed that the CME gap could possibly be the reason for suppressing the BTC price at the moment. Also, the bitcoin bearish trend is supported by the hype in Defi and the sudden rise in the ETH gas fees.

Denis Vinokourov, the head of research for digital asset exchange and brokerage firm Bequant, told Cointelegraph:

Any immediate concerns over the sustainability of certain DeFi-based offerings are likely to provide a degree of support for Bitcoin. Thus, ETH and BTC may remain on a downward trend. However, that market appears to be overly fixated on DeFi and is ignoring positive developments that have come out of Ethereum over the last few days, which indicate the transition to 2.0 is very much on-track.

Later on, it has been predicted that the BTC bearish trend would aid the price of bitcoin to fall below $9,500 and the re-prediction stated that the price would further go down below $8,000. Some of the crypto holders are still awaiting the price to hit $12,000, and as soon as that happens, they are likely to sell their bitcoin holdings.

In the recent prediction, it has been stated that there is no exception because the price has added a 7.7% for attacking the $11k level. Also, the derivative markets are predominantly sensitive to trend changes for leverage. As of now, the price of bitcoin cryptocurrency has closed in on $11k ($10,960 to be exact), but the crypto analysts mention that the move should not raise too high hopes because the massive downside could follow the rejections at this level.

The 8% rally could not pose much pressure to the resistance in the past three days and that the traders are not confident following the recent price recovery. As a matter of fact, not every bull run (bullish trend) would lead to a positive funding rate, and it is very unusual for the positive moves to occur during the tenure of negative funding. Even though there are no additional positions made during bull runs, the liquidation of the short-sellers will lead to the rise in the funding rate. The decreasing demand for the leverage shorts traders is preferably causing this and is accompanied by the buyers who are adding the long positions.

The below data shows a brief moment of optimism as the funding rate changed to positive ahead of the below $11k drop. After that, the indicator turned negative; there is no more indication that bitcoin price will run the bullish state.

CryptoCompare analysts stated:

Is this a sign that bigger, perhaps institutional, players are getting more involved in the space? Active addresses for Bitcoin are stable at the moment, while Ethereum’s momentum is dropping, possibly reflecting the recent pull back from the DeFi space, following a very active period.

Thus, it can be concluded that the bearish trend of Bitcoin is about to fade or is in the process. This means that you could start buying bitcoins or invest in them if you are planning for the longest time and the bullish trend caused a hindrance.

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