Traders around the world are seeing red Thursday, with almost all major assets taking a great hit. Bitcoin, which has been struggling in the range of $9,500-$9,900 for the past week, dropped 6.4% to $9,258 as of 20:00 UTC (4 p.m. ET).
The sudden plunge of bitcoin could be attributed to the staggering drop of the stock market and bitcoin’s failed attempts to break through the $10,500 multi-year resistance zone.
Since bitcoin’s Black Thursday in March, there seems to be an uncanny correlation between bitcoin and the U.S. stock market. On Thursday, the S&P 500 closed down 5.89% and saw a worst since March 16. As for Dow, it closed down 6.9%.
The sharp selling was a response to both the fears of a second wave of coronavirus that could further damage the economy and the lack of positive support of the Fed. On Wednesday, the Federal Open Market Committee(FOMC) claimed that the real GDP of the U.S. in 2020 will shrink by 6.5% and the unemployment rate is expected to reach 9.3%. But FOMC also envisioned that unemployment will fall to 6.5% and real GDP rebound by 5.0% in 2021. One positive sign is that 2.5 million jobs were recovered according to last Friday’s May jobs report of the Labor Department.
Despite the setback, the market still remains positive towards the medium and long-term performance of bitcoin. Currently, the long contracts in three major trading platform occupies 69.38% of total futures contracts.
While $10,500 is a multi-year resistance zone, the $9,100–$9,300 range is a strong support area for Bitcoin since May. On June 7, bitcoin plummeted to $9,360 but saw a rapid recovery and soared to $10,160 on June 10. In view of bitcoin’s recent trend, Mohit Sorout, a founding partner of Bitazu Capita, commented that: “Evidence of buyer interest around $btc [at the] M.O. [monthly open]. This level got front run on recent dumps. Sellers just don’t have what it takes to push price down.”
The past few weeks were rather dull for traders, as bitcoin volatility hit a low since March. By June 11, bitcoin’s 30-day volatility was at 40%. Hodlers might hate volatility, but it is dearly loved by futures traders and options traders who earn profits by guessing the price movements of bitcoin. Without high volatility, there isn’t just so many opportunities to make money. With bitcoin once again trying to gather strength to break the $10,000, we can expect lots of golden opportunities to make juicy profits with BTC 100x leveraged trading.
Maximize profits with the help of volatility and Bexplus
In leveraged trading, every fluctuation is an opportunity to generate profit. It’s perfectly normal for traders to achieve 100% ROI or more.
Lets’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.
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. No spread, no KYC requirements, no deposit fee, Bexplus is trusted by clients worldwide, including the USA, Japan, Iran, and Sudan.
Demo Account with 10 BTC
What better way to improve your skills than practicing in the 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
Bexplus mobile app rank in the Top 5 of keyword search results related to bitcoin trading in 56 countries in App Annie. This full-featured app provides you with the same experience when using a computer, only far more convenient.
Bexplus mobile app has a 24/7 market notification to keep you updated with any huge market movement. All data and assets can be accessed through all kinds of devices including Windows, Macbook, Android phones, iPhones, and tablets.
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.
100% Bonus to Help You Maximize Profit
Double deposits, double profits. Users can get a 100% deposit bonus for every deposit on Bexplus. If you deposit 1 BTC, 2 BTC will be credited to your account, and the profits gained with the bonus are withdrawable. Every user can join the promotion and get up to 10 BTC bonus. Now active users can get 10% off of their transaction fee.
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Disclaimer: this is a paid for, sponsored article. Bexplus is the source of this content and is responsible for the content, and the accuracy of the content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. This article is for informational purposes only. The information does not constitute investment advice or an offer to invest.