HomeBitcoinBitcoin expert says people who are buying into the market now are...

Bitcoin expert says people who are buying into the market now are late to the game.

-

  • A Bitcoin expert said that people who are starting to trade Bitcoin now are coming in late.
  • Planning for the future and how to make smart choices about money.

Recently, the price of Bitcoin has gone up a lot. It has increased by over 40% in just four weeks and is getting very close to its highest price ever. This big increase usually brings in traders and speculators who want to make quick money from the trend.

Bitcoin expert criticizes people who have recently started investing in Bitcoin

A lot of traders who missed the early price increase want to join the market using borrowed money, hoping to make more profit. However, some experts are warning that it may be risky to try to join the rally in the stock market right now.

The Market Ear found that Bitcoin’s 14-day Relative Strength Index (RSI) has reached 88, which is a level that has never been seen before when Bitcoin is trading at such high prices. Welles Wilder, measures the speed and change of price movements. It helps traders identify if a stock is overbought or oversold. Welles Wilder checks how fast and how much the price of something changes over a certain time, usually 14 days or weeks.

An RSI reading over 70 means the asset’s price might have gone up too fast and could need a correction. Experts are warning that Bitcoin’s price is really high and the market might not be a good place to invest in right now.

In the past, when Bitcoin has been sold for more than $60,000, the RSI (Relative Strength Index) showed that it was overbought, and the signal was very strong. The RSI may not always be right and markets can keep going up even when they are overbought. But it can still be a sign for people who want to buy stocks at the current prices.

Future plans and ways to invest money for a long time

It is important to remember that the RSI is just one tool and its signals should be understood considering the overall market situation. Sir Isaac Newton’s first law of motion says that an object will keep moving in the same way unless a force pushes or pulls on it.

In simple words, markets can keep going up even if they seem overbought, especially if there isn’t anything pushing them down. For people who want to invest for a long time and hold onto their investments without selling, they don’t worry much about short-term changes in the market that the RSI shows. These investors are looking at the big picture of how much Bitcoin could grow in the future, and they think it will go up for a few reasons.

One important thing is Bitcoin’s halving that cuts the supply of new bitcoins by half every four years. This limited supply has always made prices go up because there are more people who want it than there are available. Furthermore, big financial companies on Wall Street are now supporting the idea of trading Bitcoin through exchange-traded funds (ETFs), which has made people even more positive about the cryptocurrency.

This means that more big organizations accepting Bitcoin makes it more legitimate and could bring in a lot of money in the future. Most analysts and experts agree that Bitcoin will likely do well in the long term. Some think its price could go as high as $120,000 or even higher by September 2025.

Short-term traders are cautious because the RSI signals that Bitcoin is overbought, but long-term investors are hopeful that Bitcoin will keep growing. Although some people may be hesitant to invest in Bitcoin right now, those who plan to invest for a long time still see it as a good opportunity to make money. As usual, investors should do careful research and be cautious when dealing with unstable markets, no matter how long they plan to invest.

Warning: This is not advice on buying or selling stocks.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

New Bitcoin Whales Out-Invest Old Ones

Ki Young Ju, founder and CEO of CryptoQuant, has noted that the initial investments of new whales are almost twice as big as the old whales' cumulative...

Starknet-powered AVNU Launches Paymaster Feature, Revolutionizing Gas Fees on Ethereum Layer-2

In a recent development, Starknet, Ethereum’s layer-2 scaling solution leveraging zero-knowledge rollups, announced a groundbreaking feature by AVNU, its native DEX aggregator. AVNU’s newly launched...

Neo launches Neo X Beta TestNet, more information on GAS utility revealed

Neo has launched the Neo X Beta TestNet, bringing with it a new set of features as progress towards the MainNet launch continues. The latest...

NURSES PROTEST AGAINST THE USE OF AI IN HEALTHCARE AT KAISER PERMANENTE

Registered nurses and members from the California Nurses Association (CNA) protest against AI at Kaiser SF. The nurses are worried about patients’ safety but...

Most Popular

ADVERTISE HERE