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Bitcon Trading Strategy- What to Do These Days? - Binaryx

Bitcoin Trading Strategy: What to Do These Days?

Bitcoin Trading Strategy: Buy, Hold, or Sell? 

The main digital coin has risen in price by 20% in the past two weeks and by 170% in the past year. We decided to analyze whether the asset will continue to grow in price shortly or is it time to get rid of the coin to play on the depreciation.

At the beginning of 2019, the price of Bitcoin almost reached the mark of $ 9,000, but rolled back, slightly not reaching this level. Now cryptocurrency costs about $ 8600, the growth over the past two weeks has amounted to 20%, the amount of transactions is increasing, and new investors are entering the industry. But perhaps now is not the best time to buy digital money, because the correction can begin at any time.

Do Not Buy

Buying at current levels is not worth it. As for the instrument itself, its speculative potential is overvalued. Until 2017, cryptocurrency grew in price due to its novelty and supply shortage. And this created a false perception of BTC as a source of high speculative income. And this is an ordinary currency, limited in its volume, not depending on the debt problems of a country. Its task is to change value and exchange operations. Such an opinion support many traders these days, as they understand how the crypto market may change in matter of time. However, it is just an idea – not a 100% method.

A wide range of fluctuations has formed on the Bitcoin chart – from $ 2,500 to $ 14,000 per coin. The center of this range is $ 8000-8500.

HODR, HODL, HOLD – Hold the Bitcoin

Another camp of cryptocurrency traders advised taking into account the worsening relations between Iran and the USA and the launch of Bitcoin options on CME when assessing the growth of the rate. According to the experts, these events have affected the value of the asset. Therefore, it may be adjusted soon.

Many experts tend to believe that the launch of Bitcoin options on CME on January 13 added its impact – this event was even more successful than the launch of Bakkt in the fall. This indicates the continued interest of “institutional investors” in cryptocurrencies. The increased volatility for traders is an opportunity, for example, for a “short.” But experts suggest ordinary investors not to enter the cryptocurrency market now.

Buy is Possible

There is an opinion that explained the growth of the Bitcoin exchange rate at the beginning of the year was driven by rebalancing process of cryptocurrency portfolios. The main aim is to increase the share of BTC against other crypto assets before halving. Due to the fact that cryptocurrencies often have lower bureaucracy, the process of rebalancing occurs promptly in the first three weeks, rather than 1-2 months, as in the traditional market. Moreover, an additional factor was a slight decrease in the USD index (valuation of the USD against other assets).

Experts look at the future of the first cryptocurrency differently. Most of them believe that now is not the best time to buy, because soon the price of the asset will decline. And those experts who believe in the growth of the Bitcoin exchange rate cannot be 100% sure. However, you must remember a known fact: the digital money market is always unpredictable.

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