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Is it the Right Time to Buy Bitcoin And Ethereum?

Key Takeaways

  • Bitcoin and Ethereum are two of the largest cryptocurrencies by market capitalization and choosing the right time to buy them in highly volatile market conditions can further intimidate new investors

  • Bitcoin has become the biggest name in the blockchain industry and achieved the highest market capitalization amongst other cryptocurrencies

  • Ethereum (ETH) is the second-largest cryptocurrency in the world by market capitalization and came into existence as a decentralized global software platform

  • On the other hand, If Bitcoin fails to cross the $18,200 level then selling can arise in the form of crypto winter


11-Dec-2022 By: Anirudh Trivedi
Is it the Right Time to Buy Bitcoin And Ethereum?

The most common dilemma that crypto beginners have to face is the choice of cryptocurrency from which they should start their crypto journey. Even though there are thousands of crypto tokens present in the market, some are better and more valuable than others. This includes Bitcoin (BTC) and Ethereum (ETH) known as the pillars of cryptocurrencies in the world. 

Bitcoin and Ethereum are two of the largest cryptocurrencies by market capitalization and choosing the right time to buy them in highly volatile market conditions can further intimidate new investors. That is why CoinGabbar has come up with this detailed guide to know if it is the right time to buy Bitcoin and Ethereum.

If you want to invest in Bitcoin and Ethereum, read this article to the end to get your hands on a detailed Bitcoin and Ethereum investing strategy. But before we go deep down into underlying finance, let’s understand the basics of Bitcoin and Ethereum in brief. If you are already aware of the basics, you can skip the intros and move to the technical analysis. 

What is Bitcoin and Why Should You Buy Bitcoin?

Bitcoin (BTC) is the first cryptocurrency in the world and came into existence in 2009. Bitcoin was developed by Satoshi Nakamoto, an unknown entity as it is based on a Peer-2-Peer blockchain technology in which the data is stored in a series of data blocks using cryptography. With time Bitcoin has become the biggest name in the blockchain industry and achieved the highest market capitalization amongst other cryptocurrencies. Generally known as the King of Cryptocurrencies, Bitcoin earned trust by giving groundbreaking returns to its holders.

Buying cryptocurrencies or making any other form of investment is subject to financial risk and therefore you should do your own research before buying anything. Here are some of the facts about Bitcoin that you should consider before making your investment in the crypto world.

As the past year hasn’t been great for Bitcoin, many users and crypto enthusiasts have high hopes that Bitcoin will recover and begin to rise in the new year. While it can be difficult to predict the future of the crypto market due to its volatility, it seems as if many are holding on to high hopes that Bitcoin will bring big rewards in the new year.

  • Bitcoin has become the gold standard of cryptocurrencies and you can trade it in fiat or any other commodities without any hassle. Bitcoin is being accepted as a legit form of payment and hundreds of global brands are accepting Bitcoin as their payment method.

  • The returns given by Bitcoin in the short-term as well as the long-term investments had been phenomenal. 

  • Bitcoin’s demand is going to increase with time due to its limited supply. As per Bitcoin’s design, more than 21 million BTC cannot be issued.

  • Bitcoin is still a relatively new form of exchange and its potential can take it to another level in the times to come. As blockchain technology will age, the price of BTC is going to increase

  • If you are a traditional trader you know the pain of limited trading hours. Bitcoin trading can be done at your convenience as the crypto markets operate 24*7.

  • Institutional investors are entering the Bitcoin space and backing the blockchain technology, this increases the chances for Bitcoin to become a global currency and replace USD in the long run

  • Bitcoins are a highly secure currency and cannot be stolen if you follow all the right methods to protect your private keys

What is Ethereum And Why Should You Buy Ethereum?

Ethereum (ETH) is the second-largest cryptocurrency in the world by market capitalization and came into existence as a decentralized global software platform. Ethereum was developed by Vitalik Bueterin along with Dimitry Buterin, Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin. 

Ethereum was not only a cryptocurrency and could do much more than that, users could create decentralized applications on its mainnet. The ETH coin was introduced to incentivize the miners and other contributors but now ETH is second to only Bitcoin in terms of overall crypto trade volumes. Ethereum blockchain network supports smart contracts and enables developers to decentralize their applications.

In September, Ethereum completed a long-awaited technological upgrade. "The Merge" shifted the cryptocurrency's blockchain basis away from the resource-intensive proof-of-work approach and toward a leaner, quicker proof-of-stake architecture. The update also paved the way for future enhancements like sharding and drastically reduced throughput rates.

The recent collapse of FTX, a top-tier centralized exchange further worried investors amidst the crypto winter. The market's already existing bearish fire has been fueled by the effects of this event. Additionally, buyers looking for the best cryptos to buy during the bear market may consider Ethereum as a viable option.

While Ethereum has regularly dropped over the previous year, buyers have made concerted attempts in recent months to defend its near support level. Any increase in the overall market mood might put Ethereum back on track.

Here are some of the reasons that make ETH a great investment option for those who are willing to enter the crypto market amidst this crypto winter. 

  • Ethereum is the second-largest cryptocurrency by market capitalization and thus one of the most trustworthy tokens that you can invest in

  • Ethereum is not only a token but has hundreds of different use cases from which it derives its value

  • Ethereum has a deeply rooted ecosystem and an extremely rich crypto community that makes it one of the strongest projects in the industry

  • The merge has made Ethereum better and more efficient than ever before and this is one of the few steps that the community is taking to make Ethereum better with time

  • There is no better alternative than Ethereum when it comes to minting NFTs. Ethereum’s NFT collection is the richest in the industry and most of the users trust the credibility of the project depending upon the blockchain it is minted on

  • Cryptocurrency markets are going under deep crypto winter and the prices are at years low. If you are willing to buy ETH, there could be no better time than today.


Bitcoin Chart Analysis:

Will the dead cat bounce or will the bloodbath continue? A Technical outlook

According to daily chart analysis, The $18,000 level had been supporting the price for several months. However, Bitcoin was recently rejected and experienced a massive shakeout, plunging beneath it following massive bearish momentum.

The market has likely entered a new consolidation range as the price dropped significantly. Nevertheless, during this phase, the price might retest the $18K level and the broken trend line in the form of a pullback and then continue the bearish trend toward the $15,500 level.

After the FTX drama, the BTC formed a low near $15,500, and some recovery is seen from lower levels. On a daily basis, BTC formed a double bottom pattern and took a U-Turn recovery. Now the price is trading in a tight range from $16,700 -$17,300 range. Ahead of FED FUND RATES and ECONOMIC PROJECTION Market is looking nervous and the volume is completely dry. If Bitcoin is able to close above $17,200 then the price can rise to the major resistance near $18,200 as previous support turns into strong resistance. A close above $18,200 will confirm the end of crypto winter.

On the other hand, If Bitcoin fails to cross the $18,200 level then selling can arise in the form of crypto winter. In such a case, the next support level for investors to keep a close eye on is $15,500. A breakdown below this barrier will result in a brutal sell-off to the $13,200 level. There is a high probability that Bitcoin price will form a local bottom between the $13,500 and $10,500 levels as indicated by the Fibonacci extension level.

If we analyze the weekly chart, BTC is taking support from the long-term trendline near the $15,500 level. After forming a long red candle, in the next two weeks form a morning star candle and after that, a green candle is closed which is an indication of a reversal of the market. The latest weekly candle is trading in the form of the DOJI as it waits for a major event coming on 15th Dec. 

According to technical analysis, traders should wait and watch the above level. Long-term buyers should wait for entry above $18,200, while prices below $15,500 will create panic selling pressure.

Daily Chart

Daily Chart of bitcoin

Weekly Chart

Weekly Chart of Bitcoin

Ethereum Chart Analysis:

Is the bottom fishing out or will crypto winter continue? A Technical Analysis

According to daily chart analysis, Ethereum is holding stronger than Bitcoin. Eth has been trading in a falling channel line for a few weeks. After the FTX drama, the ETH formed a low near $1,070, and some recovery is seen from lower levels. On a daily basis, ETH formed a double bottom pattern and took a U-Turn recovery. Now the price is trading in a tight range from $12,20 -$1,310 range. Ahead of FED FUND RATES and ECONOMIC PROJECTION Market is looking nervous and the volume is completely dry. If Eth is able to close above $1,310 then the price can easily cross the 1,400 level soon. A close above $14,00 will confirm the end of crypto winter.

On weekly chart analysis, On 08 Nov. 2021 ETH formed a DOJI pattern. After this, the price corrected almost 82% from the high. ETH is trading below the 20, 50, 100, and 200-day Moving averages. According to Elliott Wave, the ETh is trading near the C pattern of the Impulse range. If we analyze the weekly chart then ETH is facing a third-time resistance from the trendline.

DAILY CHART

Daily Chart of Ethereum

WEEKLY CHART

Weekly Chart of Ethereum

Conclusion

Bitcoin and Ethereum are two of the most credible cryptocurrencies that you can have in 2022. They not only have a strong crypto community backing up their market value but also real-life use cases. Today, when the markets are going through a steep crypto winter, investors are still holding on to their BTC and ETH investments, depicting the users’ trust in the tokens. 

Both of these cryptocurrencies could be great investment options if you do not want to experiment too much with other altcoins. The technical details that we shared in this blog will keep you on the right track while strategizing your crypto investments. We hope that the information that we have provided in this will be useful in your crypto trading journey. 

What do you think about the future of Bitcoin and Ethereum? Share your views in the comments below! 

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