Bitcoin took a great hit yesterday and declined all the way to $9,921 before it recovered slightly to $10,250. Other cryptocurrencies also saw red, with ETH shed more than 15% of its value. ETH has dropped below its Fibonacci support level of $380 and hovering at $340.
Bitcoin’s retracement is not unexpected, as it has tested the $11K support for 8 times in the past month. Besides, bitcoin’s and gold’s rally in the past month are believed to be the result of the weakening dollar. Now with the dollar appearing to have gained strength, investors are not surprised to see bitcoin and gold retrace a little.
Recent rallies of bitcoin provided miners with selling opportunities to cash in their profit. Miners sold $9.5m worth of BTC in just a day, while they only mined $5.8m per day. The large dump of bitcoin in the market naturally added fuel to the massive sell-off.
The next level to watch is $10,500, which served as a strong support in the past two months. If bitcoin fails to reclaim this level, further retracement to $9,500 could occur.
While bitcoin may decline further in the near term, analysts still maintain a hopeful view. Mati Greenspan, the founder of Quantum Economics commented that “The crypto market has broken a few psychological levels. When we broke above that level in late July, it was with such force that we never really got to test it as support. Well, this may just be our chance … if things get really bad we may just get another chance to buy bitcoin below $10,000.”
Futures trading – profit from the ups and downs of bitcoin
Futures trading is a popular and mature instrument in crypto trading which allows traders to long or short bitcoin and gain profits with the right speculation. Another feature of futures trading is that traders can borrow leverage from exchanges to open a position far greater than their initial funds, thus enhancing the chances of making profits.
Let’s see how we can benefit from the price drop of bitcoin:
Assume we use 1 BTC to open a short contract when bitcoin was trading at $1,1000. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC.
One day later, the price of bitcoin dropped to $10,500.The profit will be ($11,000 – $10,500) * 100 BTC/$10,500 *100% = 4.76 BTC, making the ROI 476%.
Then the price of bitcoin got another hit and dropped to $10,000. The profit will be ($11,000 – $10,000) * 100 BTC/$10,000 *100% = 10 BTC, making the ROI 1000%.
Bexplus: a go-to crypto exchange for beginners and veterans
Registered in Saint Vincent and the Grenadines, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP and etc.
- Easy registration with no KYC
Anonymity is highly valued in Bexplus, hence the no KYC policy. Only email verification is needed and the registration process only takes one minute.
- Demo account for beginners
If you are new to futures trading, don’t worry. Bexplus is one of the most user-friendly platforms with its intuitive trading interface and demo account. Upon registration, each user will get a demo account with 10 replenishable BTC. You can practice to your heart’s content. For advanced traders, there are a variety of analytical tools in the trading engine to analyze the market.
- BTC wallet with up to 30% annualized interest
Even if you take a break from trading, you could still earn passive income with the Bexplus wallet. The interest is calculated daily and the revenue of the deposit will be settled monthly. The monthly interest is calculated as (S*I/365*30)=MI. S represents the sum of the deposit, I stands for interest, and MI is the monthly interest.
For instance, if you deposit 10 BTC in your wallet, the monthly interest you would receive is (10*30%/365*30)=0.24 BTC. While most lending platforms require traders to deposit at least 1 BTC, traders can make a deposit starting from 0.05 BTC on Bexplus.
- Powerful mobile support
How to take a break from trading when bitcoin trades around the clock? The top-ranking Bexplus app helps you better manage your account. With the 24/7 notification, you can stay updated with the market. All data and assets can be accessed through all kinds of devices including desktops, mobile phones, and tablets.
- No deposit fee and super-fast withdrawal
Bexplus requires no deposit fee, you can start your deposit from 0.001 BTC and begin your accumulation. You can file a withdrawal request 24/7, and withdrawal usually takes 30 minutes during work hours.
- 100 % deposit bonus for every user
A doubled margin helps you double profits. Besides, the possibility of forced liquidation will be significantly lowered with more margins. Deposit 1 BTC and 2 BTC will be credited to your account. 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!
Follow Bexplus on:
Apple App Store: https://itunes.apple.com/app/id1442189260?mt=8
Google Play: https://play.google.com/store/apps/details?id=com.lingxi.bexplus