Bitcoin investors are accustomed to the wide price swings. More recently, the crypto fell below $42,000. This is well off the $60,000 support line established between Oct. 2021 and November. Where will Bitcoin bottom?
Predicting the bottom for anything tradable is a fool's game. Speculators should assess the impact of the Federal Reserve’s rate hike on the stock market first. For example, the Fed minutes led to strong selling on the Nasdaq exchange. Crypto miners and platform stocks like Coinbase (COIN) fell.
Bitcoin trading volumes will give holders a buy or sell signal. If relative selling volume increases while the technology index falls, expect a lower entry point for Bitcoin’s prices. Conversely, if volume falls and prices fall, then it suggests the number of bearish traders is falling.
Trying to time Bitcoin finding its support level may lead to missing out on the rebound. The coin has a history of reversing its downtrend unexpectedly. Investors who do not have the time to watch Bitcoin transaction volumes may hold the asset and ignore the volatility.
Investors who do not have a cryptocurrency account may consider Coinbase, a platform. Robinhood (HOOD) has some support for crypto but faces competition.
