top of page

Bitcoin Bounces Back to 18-Month Highs: Trade the Momentum?

Bitcoin has demonstrated a strong comeback, reaching 18-month highs, an indicator of the market's bullish sentiment. Here's why trading Bitcoin now could be more opportune than simply buying into the crypto market.


The Resurgence of Bitcoin

After retracting to the $35,000 mark, Bitcoin surged 4% in the last 24 hours, flirting with $37,900. This rebound signifies a retest of the heights not seen since the May 2022 bear market.


As crypto trading reawakens from its dormancy, the largest digital currency has experienced an approximate one-third increase in value over the past month.


Why is Bitcoin Climbing?

Several factors contribute to Bitcoin's buoyancy:

  • Anticipation of a spot Bitcoin ETF approval, which could attract significant investment.

  • A favorable macroeconomic climate, with the possibility that the Federal Reserve has concluded its interest rate hikes.

Potential Risks and Rewards

Despite the optimism, caution is advised. Some analysts, like those from J.P. Morgan, suggest the rally could be overextended.


However, the possibility of ascending to $45,000-$46,000 cannot be dismissed if the market maintains its current trajectory.


BTCUSD bitcoin chart

Trading Signal: Bullish Outlook

  • Trade Direction: BULLISH

  • Trade Probability: 70%

  • Yesterday's Trend: Recovery from a recent dip.

  • Pivot Point: $35,000

  • Indicators:

    • Volatility: Showing signs of increase, supporting the bullish trend.

    • Moving Average: Bitcoin is trading above the Moving Average, indicating a bullish trend.

    • Ichimoku Cloud: Currently, the price is above the cloud, suggesting bullish momentum.

    • RSI: Hovering around 66, which suggests the market isn't overbought yet.

    • Bollinger Bands: The price is near the upper band, showing strength, but beware of potential volatility.


🎯 Targets for Taking Profits:

  • 1st Resistance: $38,500

  • 2nd Resistance: $40,000

  • 3rd Resistance: $41,500

❌ Stop Loss Guidelines:

  • Buy: Set a stop loss just below the $35,000 pivot point, around $34,500.

Call to Action

For traders looking to capitalise on the current trend, entering a long position with a target of $38,500 seems prudent. Implement a stop loss to mitigate risk and consider booking profits at successive resistance levels.



Trading Cryptos with CFDs: A Strategic Approach


Contract for Differences (CFD) trading offers a flexible way to participate in the movements of cryptocurrency prices without owning the underlying asset.


This method has its unique advantages, which can be pivotal in a trader's approach to the crypto market, especially with Bitcoin's recent bullish behavior.


Understanding Crypto CFDs

CFD trading is a type of derivative that allows you to speculate on the rising or falling prices of fast-moving global financial markets, such as cryptocurrencies.


The value of a CFD contract does not consider the underlying asset's value; instead, it reflects the price changes of that asset.


Advantages of Trading Bitcoin CFDs

  1. No Need for Crypto Wallets or Exchange Accounts: Unlike traditional crypto trading, CFDs do not require you to purchase or store digital currencies, which means no dealing with exchange security risks or wallet management.

  2. Trade in Both Directions: You can go long (buy) if you think Bitcoin’s price will rise or go short (sell) if you expect it to fall. This flexibility is not readily available when you own actual cryptocurrencies.

  3. Leverage: CFDs provide the ability to trade on margin, offering greater exposure to the cryptocurrency market with a smaller amount of capital. However, leverage can amplify both profits and losses.

  4. Hedging Opportunities: If you already own Bitcoin but suspect it will fall in the short term, you can open a short position with CFDs to hedge your investment.

Practical Guidelines for Trading Bitcoin CFDs

  • Stay Informed: Keep abreast of market news and trends, as cryptocurrencies can be highly sensitive to market sentiment.

  • Risk Management: Employ stop loss and take profit orders to manage your risk effectively, especially due to the leverage involved in CFD trading.

  • Monitor Volatility: Cryptocurrencies can be extremely volatile. Use price alerts and consider the implications of significant price movements.

Conclusion

Trading Bitcoin CFDs can be a strategic way to engage with the crypto market.


It offers advantages like flexibility, leverage, and the ability to short sell.


With the current bullish trend, traders might find CFDs an attractive option to leverage their positions in the market.


However, it's crucial to approach this with due diligence, a clear understanding of CFDs, and a robust risk management strategy to navigate the volatile waters of cryptocurrency trading.


Remember, CFD trading carries risks and may not be suitable for all investors. It's essential to understand the risks involved fully and consider seeking independent advice.


As with all investments, your capital is at risk. Investments can fall and rise and you

may get back less than you invested.


Comentários


Os comentários foram desativados.
bottom of page