Should you buy bitcoin amidst the ongoing market sell-off?
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- Bitcoin Eyes near term support at $32108
- The bulls might have a chance along with the support
- Bitcoin trade with a complete sell-off with little sign of the oversold condition.
Negative market sentiment swept the value of Bitcoin by half of its previous ATH value of $69K in October. At the start of the new trading week on Monday, Bitcoin was spotted in an aggressive red pool of a bearish market.
It was reported that Bitcoin has lost above 50% of its value when compared to the All-Time high value of $69Kin October 2021. With a three month downhill moment yet, there is no sign that this bearish price action will be ending soon
Technical levels to watch before buying Bitcoin
Source – TradingView
Since the value of BTC trade is below the $38890 initial support, the price of bitcoin continues to expand its bearish wings to the South. After strong bearish market volatility was said to have aided the action of the bears towards plunging the price of BTC downward.
In essence, if you must take a long position for BTC/USD digital currency pair, you ought to be aware that the Bitcoin market is currently trading along the $33903 support region. Hence waiting for a bullish retracement above that level will aid your decision to buy the assets.
However, from a technical analysis viewpoint, Bitcoin seems to pose a long-term bearish price action as the value of the assets aims to hit near-term support at $30696.
In general, a good trading recommendation would be to wait for the price to break above $30696 market initial support before considering taking a long position.
Final thought
The ongoing sell-off in the market could be attributed to the difference in the proportion of demand and supply. In addition, the crypto market will tend to rise in value when the demand outweighs its supply. On the other hand, the market will plummet when the market supply outweighs its demand.
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