16/12/2024
Bitcoin has recently reached historic highs, surpassing $100,000. However, many are wondering if this is the right time to invest in the asset. Below, we analyze market phases and provide our predictions for both short-term and medium-term scenarios to give you a clearer picture.
Market Phases and Our Perspective
In the Bitcoin market, price movements typically follow a consistent pattern:
1. Phase 1: Bullish (Uptrend) – Current Cycle
Currently, Bitcoin is in a bullish phase, experiencing strong upward momentum. However, as seen in previous cycles, this phase cannot be sustained indefinitely. During this phase, prices tend to reach extreme levels, which often leads to corrections.
2. Phase 2: Corrective and Accumulation Phase
After a prolonged bullish run, the market enters a corrective phase. During this period, prices usually decline as investors look for better entry points. This phase is essential as it provides an opportunity to accumulate assets at more accessible levels, setting the stage for future rallies.
3. Phase 3: Bullish (Breakout) – Future Projection
Once the corrective phase concludes, the market resumes its bullish trend, setting new all-time highs.
Short-Term (Weekly) Prediction
Bitcoin could rise to $108,000, $110,000, or even $115,000 throughout this week—something to consider. However, we believe the price is likely to correct in the short term. This Wednesday, key events such as the FED interest rate decision, FOMC projections, and the FED chairman’s conference could introduce significant volatility, either upward or downward. Therefore, it’s crucial to be cautious of false bullish signals created by “smart money.”
Why Wait?
The current price, above $100,000, is not considered a reasonable entry point for long-term investors. We expect a correction, with potential dips below $90,000 becoming much more likely. This correction won’t happen overnight but could extend over weeks or even months.
Medium-Term (Weeks and Months) Prediction
We anticipate Bitcoin is on track for a prolonged corrective phase. Accumulation during this phase could push the price below $90,000 over the coming months. This doesn’t mean it will happen immediately, but it could unfold as a longer-term process.
Events this Wednesday, such as the FED decisions and FOMC projections, may add significant volatility, either upward or downward. As such, it’s crucial to be wary of traps set by large investors ("smart money").
Risks and Opportunities
Investing in Bitcoin now could be risky, given that we expect the price to correct toward $90,000 or lower. Opportunities lie during the corrective phase, where lower prices could provide better entry points for those seeking long-term investments.
Conclusion
In summary, while Bitcoin may experience temporary short-term gains, we believe the price will correct in the coming weeks and months. Investing now presents risks, as it could add significant volatility, either upward or downward.
Our recommendation is to wait until Bitcoin reaches more accessible levels, below $90,000, before considering an investment.
In conclusion, while Bitcoin may rise to $108,000, $110,000, or even $115,000 this week, attempting trades during such a complex period is too risky. As we anticipate, within the coming weeks or months, a strong correction below $90,000 seems likely, making it more appropriate to buy during this phase of accumulation (Phase 2 we previously discussed).
For general inquiries, you can also contact us at silverfontinvestments@gmail.com
For personalized premium advice, reach out to us at silverfontinvestments@gmail.com
Disclaimer:
The content of this article is for informational purposes only and does not constitute financial advice, investment recommendations, or a suggestion to buy or sell assets. Cryptocurrencies and digital assets are highly volatile and may involve significant risks. Always conduct your own research (DYOR) and consult with a professional financial advisor before making investment decisions. The author and the website are not responsible for any loss or damage that may arise from investments based on the information provided.
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