Bitcoin started off the week on the wrong foot. After trading sideways for a few weeks at $9,400, it suddenly plunged to $8,971, leading many to believe this is the beginning of a bear market.
According to market data, the sell-off was partly caused by Bitcoin whales dumping their coins, which arose the fear among retail investors and further added pressure to the vicious circle. As we all remember, the great crash that cut Bitcoin’s price in half was caused by whales selling high up, and since Bitcoin has rallied over 130% since March, we can’t help but wonder whether whales are starting to take profits by selling their coins.
Bitcoin has already had many failed attempts at breaking the $10,500, a crucial resistance level since October 2019. Historical data suggests that what followed the rejection was usually a slide. According to Pentarhudi, a respected Bitcoin trader who has made some accurate predictions, a triple top formation is evident on Bitcoin’s daily chart: “Triple top on daily… Bearish pattern. Will trigger at close below $8000 with a target to $6000. Either triple top or range lock.” Dollar 8,600 is a strong support area of Bitcoin, if Bitcoin fails to uphold it, a downtrend to $7,000, even $6,000, is very possible.
Although Bitcoin is believed by many as a safe-haven asset, Bitcoin isn’t immune from the downside risks of the global economy and geopolitical risks. In 2020, the movement of the Bitcoin price shows an uncanny correlation with that of the S&P 500. Just a few days ago, in response to the possibility of a second wave of coronavirus, almost all major assets took a dive, with Bitcoin, the S&P 500 and the Dow dropping 6.4%, 5.89%, and 6.9% respectively.
By far, the U.S. has the largest number of coronavirus cases, and the turning point seems still far away. Tokyo reports 48 new cases while Beijing is bracing for a second wave of coronavirus. By June 16, there are 106 reported in Beijing and more than 20 Beijing neighborhoods are declared as ‘medium risk’. With coronavirus continues to wreak havoc, more investors will turn to the risk-off mode which could further push the price of Bitcoin down.
How to maximize profits even in a bear market
Leveraged trading is a mature derivative in the crypto market. By using the leverage offers by crypto-exchanges, traders can open a position X times bigger than their initial investment. Even in a bear market, traders can earn profit by shorting Bitcoin.
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.
Profit: ($9000-$8500)*1 BTC/$8500=0.059 BTC.
Bexplus is a leading crypto derivatives platform offering 100x leverage in BTC, ETH, EOS, LTC, and XRP futures contracts. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.
- Demo account with 10 BTC
To help traders better familiarize themselves with leveraged trading, Bexplus has launched the trading simulator. There are 10 replenishable BTC in the demo account for traders to practice as much as they like, without taking any risks. You can also learn to analyze the market and use the tool-kit with the demo account.
- Top ranking mobile apps to help you trade smartly
The top-ranking Bexplus mobile app has one of the most intuitive interfaces that could help you better manage your account. Even when taking the subway or waiting for your food to arrive, you can check the market, open positions, or make a deposit on the interest-bearing wallet with just a few swipes.
- 24/7 withdrawal and 24/7 customer support
You can submit a withdrawal request anytime you want. You can have your deposits back in as fast as 30 minutes during work hours. If you encounter any problems when using Bexplus, you can contact customer support via different channels, such as e-mail and live chat.
- BTC wallet: up to 30% annualized interest without any risks
If you want to avoid the bear market and take a short break from trading, the Bexplus BTC wallet can help you generate juicy profit without taking any risks. With up to 30% annualized interests, it is no doubt one of the most profitable rates in the industry. While most lending platforms require traders to deposit at least 1 BTC, traders can make a deposit starting from 0.05 BTC on Bexplus.
- 100% bonus to help you maximize profit
Bexplus has launched a 100% deposit bonus as a thank-you gift to every user. Up to 10 BTC is available and you can withdraw all the profits generated by the bonus. Furthermore, active users can get 10% off of transaction fees. Don’t hesitate to contact Bexplus support for more information!
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