Bitcoin's Near 1% Climb Back to $29,429: Key Takeaways for Traders

The price of Bitcoin is up 0.97% over the past hour to $29,429 according to our data provider CoinStats. This brings Bitcoin back towards $30k after falling below that key level yesterday.

Looking at the broader picture, Bitcoin remains down over the past day, week, and month, by 1.26%, 1.87%, and 4.70% respectively. However, zooming out further shows an impressive 27.7% gain over the past 6 months.

My analysis of the charts indicates that Bitcoin is finding support around the $29k level after breaching below it earlier this week. This support line also roughly aligns with the 200-day moving average, which has acted as strong support during Bitcoin's previous corrections.

I expect Bitcoin to continue consolidating in the near-term between around $28k-$32k as it establishes a new trading range after the frenzied bull run to nearly $69k in November 2021. However, the longer-term technicals remain bullish in my view, with healthy on-chain metrics and increasing institutional adoption. I wouldn't be surprised to see Bitcoin make another run towards, and potentially above, it's all-time high over the next 6-12 months.

How High Can Bitcoin Realistically Go This Cycle?

Bitcoin has already experienced a massive bull run over the past couple years. However, based on historical market cycles, further upside of 100-200% from the current levels is certainly possible before the next bear market.

That would put Bitcoin potentially reaching a price of $60k-$90k this cycle if it follows similar patterns as previous cycles. There is also a chance Bitcoin continues to surprise to the upside given increasing mainstream adoption. I think $100k Bitcoin is feasible if the current bull run sees an extended blow-off top phase.

Overall, remaining realistic, I would expect Bitcoin to trade in a range of $40k-$100k over the next 6-12 months before entering the next bear market and likely 80-90% drawdown. Bitcoin has proven time and again that its long-term uptrend remains intact throughout these cycles.

What Is The Best Bitcoin Investment Strategy?

When it comes to investing in Bitcoin, the most proven strategy is simply buying and holding for the long-term. Trying to time short-term peaks and troughs is extremely difficult.

For most investors, dollar cost averaging into a Bitcoin position over time is likely the best approach. This helps avoid trying to predict exact entry and exit points.

Once purchased, move Bitcoin into cold storage for security and hold for at least one 4-year market cycle. Historically, this investment horizon has led to life-changing gains from Bitcoin's exponential growth.

Of course, only invest what you can afford to lose and ensure you have a diversified portfolio. Bitcoin remains a high-risk, high-reward asset class currently. But with proper risk management, its disruptive technology and network effects make it a worthwhile addition as a long-term, asymmetric upside opportunity.

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