Is Bitcoin Back?

Is Bitcoin Back?

Two years ago, the financial news outlets were going crazy over Bitcoin (BTC). High profile billionaires openly promoted Bitcoin as the “money of the future,” investors were boarding the money train with high hopes—and high is exactly what they got. Could the profitable highs of 2017 happen again and how can you use trading tools to increase the potential profits of a repeat rally?

The BTC bubble

In May 2017, the word “Bitcoin” went viral, exceeded all forecasts, and shocked the world. Cryptocurrency ads appeared on every kind of web page, and the $1,300 price tag started rising faster than business news could report on it.

By the end of the year, Bitcoin was trending, and BTC investors were celebrating an unexpected and huge Crypto-Christmas bonus of almost 20K. Then the bottom fell out. Early bird investors clicked the Sell button for huge profits, the so-called Bitcoin bubble burst, and the late investors took the heavy hit.

By Valentine's Day 2018, nobody was loving BTC anymore. The television and the news media were demonizing Bitcoin, and crypto-sentiment took a nosedive to the tune of $6,500 per coin. With confidence lost, traders started panic-selling, and when the dust finally settled a year later, Bitcoin lay bleeding at less than 4K.

How Bitcoin prices work

Bitcoin is often called the gateway to crypto, which influences the entire index.

Bitcoin and its crypto-siblings have a finite amount, making them susceptible to the scarcity principle. In other words, the smaller the amount of available Bitcoin, the higher the price. Bitcoin creators limited the availability to 21 million coins. 4 million coins remain available.

There’s nothing mysterious about Bitcoin price moves—at least not to a trader. Some traders made serious profits buying BTC contracts in 2017, while others profited by selling Bitcoin CFDs in 2018. Then there are the ones who did the opposite, quickly lost at lot, and labeled Bitcoin as manipulated or too risky. Has anything changed?

Bitcoin in 2019

So far, Bitcoin has hit a bull run in Q2 of 2019, doubling in value in the last six weeks to over $8K. With international media releases turning positive for the decentralized crypto-giant, the world is starting to see potential profit once again.

A rise to 16K would only double your investment. If you take advantage of CFD leverage you can multiply that result by as much as 200. Just remember that leverage makes trades highly sensitive to price fluctuations. Volatility can wipe out your entire equity in minutes, so consider Stop Loss or pending hedging orders for protection.

Just how high and for how long the Bitcoin rally will go is unknown and extremely hard to forecast. Since technical analysis probably won’t offer any clear recommendations when it comes to the right way to trade Bitcoin. We at FX News suggest you follow fundamental analysis for the time being.

Consider running an online search for “Bitcoin” to see how many results give a positive outlook. If mainstream media outlets start reporting on the rise, a BTC Buy order may well be the way to go this summer.

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Disclaimer: the publication of analysis is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience or current financial situation. Analysis is not prepared in accordance with legal requirements promoting independent investment research and Exness is not subject to any prohibition on dealing before the release of analytics. Readers should consider the possibility that they might incur losses. Exness is not liable for any losses incurred due to the use of analysis. Risk warning: CFDs are leveraged products. Trading them carries a high level of risk, so it is not appropriate for all investors. The value of investments can both increase and decrease and an investor may lose all of their invested capital. Under no circumstances shall the Company have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from or relating to any transactions in CFDs. © 2008—2019, Exness