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Bitcoin is having one of its volatile episodes again. After making several parabolic moves and reaching $40,000, Bitcoin was pushed back to $35,000 in a matter of a few hours. About $170 billion were wiped out from the cryptocurrency market.
Bitcoin Analyst Philip Swift shared his view that Bitcoin is overheated now according to the MVRV Z-score.
“We can see that when the z-score enters the red zone it signals a market top. We are not there yet but a few more parabolic days up for price and we will be.”
10-40 percent corrections were common during the 2017 bull run. Many believe the potential additional government fiscal stimulus will reinforce Bitcoin’s safe-haven characteristic. While the recent correction looks scary, buyers may buy the dip to push Bitcoin back to $40,000.
How to Take Advantage of Volatility
Besides spot trading, many traders turn to leveraged trading to enhance their profitability. Leveraged trading enables traders to long or short their cryptocurrencies, so they could earn profits no matter which way the price goes while taking advantage of volatility.
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. If you are ambitious to earn profits with leveraged trading, here are some tips for you.
Tip 1: thorough preparation makes its own luck.
Favored by beginners, Bexplus has specially offered a demo account for every user. Upon registration, users will be given an actual trading account and a demo account, so they don’t have to make a request for the demo account. There are 10 replenishable BTC in the demo account for traders to practice as much as they like.
The market of Bitcoin is changing very fast and it could be easy to get lost in all the numbers and indicators at the beginning, so a good demo account could serve as a sandbox to improve their skills without worrying about losses.
Tip 2: use limit order to open positions automatically
We never know when the next bout of volatility will hit, one moment Bitcoin is staying at $40,000, next it crashes to $35,000. More often than not, we miss the opportunity to bottom fishing. With limit orders, we could preset the order price and size. Limit orders will be executed automatically when the market price meets or exceeds the preset price.
Tip 3: trade smartly with your smart-phone.
Nowadays, smart-phones are a daily necessity and mobile applications have developed so fast that many of them are as full-featured as their desktop counterparts while being far more convenient.
Bexplus mobile app ranks in the Top 5 of keyword search results related to bitcoin trading in 56 countries in App Annie. At first glance, the interface is quite simple and intuitive, but it covers all the necessary tools (real-time charts, a variety of indicators, news alerts and etc.) and information for traders to keep abreast of the market.
Another useful function is the real-time notification that helps users monitor the market fluctuation 24/7. This could keep you updated while taking your mind off the stress temporarily. In such a volatile market, this could very well be the life-saver of your funds. Besides, all data and assets can be accessed through all kinds of devices including Windows, Macbook, Android phones, iPhones, and tablets.
Tip 4: don’t let emotions get the best of you, keep a stop-loss.
Since Bitcoin trades around the clock and it is impossible for us to monitor the market all the time, be sure to make good use of the stop-loss option that can help you lower the risks. Once the market price reaches the pre-set triggered price, your positions will be automatically closed and trade with the optimal market price available at that time. Besides, Bexplus is one of the few platforms using cross margin, which means that margin is shared among all the user’s positions. Compared with isolated margin, cross margin can keep traders’ positions open for a longer period, thus reducing the risk of liquidation.
To help traders generate more profits in the volatile market, Bexplus now offers a 100% deposit bonus. If you deposit 1 BTC, 2 BTC will be credited to your account, and the profits gained with the bonus are withdrawable. Furthermore, active users can get a 10% off transaction fee.
No KYC requirements are needed, you only need to verify your email then you could start trading within a few minutes. Join now and claim your bonus!