Bitcoin already has two big corrections in the past two weeks. The biggest cryptocurrency by value shows signs of a bull run over the past two months, reaching a new all-time high price of $19,920 on December 1st. But it lacked support at this level and took a nosedive to $18,100. On-chain data shows that the massive sell-off was initiated by whales and miners eager to take profits.
John Bollinger, famous technical analyst and the creator of Bollinger Bands indicator, comments that Bitcoin may be poised for another correction soon, as Bitcoin has formed a classic top.
It is advised that traders should keep a closer eye on Bitcoin’s movement in the next week. If Bitcoin manages to hold $19,000, it could take a breather and consolidate. But any significant drop could lead to a cascade of selling, as many traders are afraid that Bitcoin may repeat the massive nosedive right after it reaches ATH in 2017.
Despite recent setbacks, institutional investors and analysts remain bullish on the long-term outlook of Bitcoin. Reportedly, Guggenheim Macro Opportunities Fund may invest $500 million in Bitcoin through Grayscale Bitcoin Trust. Guggenheim Macro Opportunities Fund is not the only major investor to see Bitcoin in a new light. 2020 has witnessed Bitcoin gaining more recognition from institutional investors and government bodies.
How to Take Advantage of the Volatility
High volatility is a constant of Bitcoin since its birth, and it is not going away in the foreseeable future. In fact, while high volatility can make traders lose a large sum of money within a few hours, it is also high volatility that helps them multiply their investments in a short time. So how do we make the most of it and generate more BTC? The answer is very simple: leveraged trading.
In leveraged trading, every fluctuation is an opportunity to generate profit. It’s perfectly normal for traders to achieve 100% ROI or more.
Let’s see how:
Step 1: the current price of BTC is $9,000. If you believe the price is going to drop, you can open a short position with 0.01 BTC. Now, 0.01 BTC may not seem much, but with 100x leverage, you can open a contract worth 1 BTC.
Step 2: When the price of BTC drops 500 points to $8,500, you close the position.
Leveraged trading is a mature derivative in the crypto market. Established in 2017 and headquartered in Hong Kong, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP and etc.
Bexplus’ Analysis Director Justin Kwok is a crypto veteran with rich experience in different derivatives. In a recent talk, he commented that “ … normally traders would do their homework before investing in Bitcoin, so they already accepted that bitcoin trading has its own risks. The more volatile the market is, the more possible [for traders] to take profit. Still, traders should be careful with their trades and avoid liquidation. ”
- Demo account with 10 BTC
Bexplus is one of the few exchanges that offer a free demo account, which puts you through its rules and trading widgets. Inside the demo account is 10 BTC for traders to practice and try out strategies as much as they like.
- BTC Wallet: up to 30% Annualized Interest Without Any Risks
Bexplus users can gain profits not only from trading. Join the Bexplus wallet to earn up to 30% annualized interest without taking risks. With up to 30% annualized interests, it is no doubt one of the most profitable rates in the industry.
- Trade Freely on Android & iOS
The top-ranking Bexplus app integrates all the necessary functions and tools (real-time charts, a variety of indicators, news alerts and etc.) while keeping a minimalist and intuitive interface. With the Bexplus app, you can manage your account anywhere and anytime you want. Furthermore, the 24/7 notification could keep you updated with big price movements, making it easier to secure your positions.
- Deposit Activity to Earn 100% BTC Cashback
Deposit BTC in the Bexplus account and you can earn a 100% BTC bonus, which can also be used to trade futures contracts. Plus, more margins reduce the likelihood of forced liquidation. The more deposit, the more bonus you will get. Up to 10 BTC is available for each deposit.
A successful trader always diversifies his/her strategies and adapts to the market changes. Bexplus offers you infinite opportunities to earn profits. Don’t hesitate to join Bexplus and claim your bonuses!
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