“The rear view mirror is always more clearer than the windshield.”
No one can predict the future with 100% certainty, but we can learn from the past. Looking back at how the markets have performed during previous months and years can give you an idea of what may be in store for the future.
The month of July brought Bitcoin from $30,000 USD to $40,000 USD, August brought it from $40,000 USD to above $50,000 USD, and September gave Bitcoin that much needed rest before October brought it to a new all time high of $67,000 USD. November brought new all time highs at $69,000 USD before dropping to $54,000 USD for a huge discount to traders and investors. December is usually a bullish month but the bears brought Bitcoin all the way down to $46,000 USD.
2021 is finished. 2022 is here. What can we expect from the month of January?
In the stock market, January has been shown to be a good time to buy stocks. Many investors start to buy stocks during this time, perhaps investing their end of year bonuses into the market.
What about the cryptocurrency market? Historically, how has Bitcoin performed during the month of January? Will January be a red month? Or will it be taking Bitcoin to higher highs?
The statistics for January show that this month could go either way. Will the bulls remain in control of the trend? Or will the bulls step up to the plate?
Over the last decade, five out of ten January months were green. On average, when Bitcoin saw positive returns, Bitcoin had an increase of nearly 25%! When January has been red, the average returns were about -16%.
Investors and traders should be cautious this month. The month of January was green in 2021. The months of April, May, November and December have historically been green months, but 2021 decided that they all would be red last year. What’s in store for 2022?
The Greed and Fear Index has been ranging between “Extreme Fear” and “Fear.” It is currently at “Extreme Fear.”
The new year started off with a nice green daily candle for Bitcoin. Bitcoin built itself a strong base of support at $45,000 USD but struggled to overcome resistance at $48,000 USD. It closed the week just below resistance at $47,350 USD.
During the second week the bears have been relentless. The bears controlled the majority of the week, printing red candles throughout the week. Support fell through the $45,000 zone and below $42,000. The $40,000 zone is the new support zone; This area has acted as strong support during the September 2021 lows. Bitcoin closed the week at $41,800.
The third week of January showed that the Bitcoin bulls are defending the $40,000 zone. Not only did they defend this zone but they pushed the price up as high as $44,400 before being brought back down to the $43,000 resistance zone. Bitcoin closed the week with a nice green weekly candle after two consecutive red candles.
This next week is critical for crypto investors. At this time the bulls have the momentum, buyers need to step in! Otherwise the bears could take control and retest the $40,000 to $38,000 area.
Anything can happen. Always expect the unexpected. Stick to your plan. Take profits. Set your stop losses. Don’t get greedy.
Thank you for your time! If you found this article interesting or helpful in any way please let me know in the comments below. Feel free to follow me for more articles on how I invest or how I earn other free rewards such as crypto, stocks, or gift cards.
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*Disclaimer- I am not a certified financial planner/advisor, certified financial analyst, economist, CPA, accountant, or lawyer, or anything important for that matter. The contents of this article are for informational, educational, and entertainment purposes only and do not constitute financial, accounting, or legal advice. Always do your own research.*