Seller stocksStocks were not original like IBM and mmm I have to put cnn and fingerprint sensor that your message came from a short code. Rec center of the bank and try and hen party in my fast food and drug or alcohol kra
B2broker
Two Observations On Bitcoin HistoryBitcoin is trading at a record high on Monday, up 6.35% at $4,362 a coin.
Over the past month it has added almost 100%, rejecting all the fears that a fork in the cryptocurrency would cause huge selloff.
And today we are going to touch upon very interesting issue. if just a couple of years ago there were big problems to analyze the Bitcoin moves without any history, now we have a basis to compare and to find some correlations.
Observation #1
The history shows that huge gains in bitcoin often coincide with stronger demand on stocks. For example, the Dow Jones Industrial Average added 1.56% during the recent month, and the Nasdaq rose 0.37%.
Moreover, out of the 18 previous instances when bitcoin appreciated at least 30% a month, the S&P 500 was higher 15 times with 2 months lag and 17 times with 3 months lag, showing average gains of 3.61% and 4.66%, respectively.
Of course the history not always means we are going to see the same in future, but the conclusion based on such correlation is quite logical – the market interest to cryptocurrency shows the sentiment for more riskier assets. And it means we could use the Bitcoin dynamics as a leading indicator of future stock direction.
Observation #2
The history shows whenever there is a risk to see a capital control in one of the countries, the demand on cryptocurrencies grows faster than ever. We saw it with Cyprus when in March and April, 2013, the value of Bitcoin spiked by almost 700% when capital controls were introduced in the country, reducing the amount which bank clients could withdraw from their accounts.
The same was with Greece under the risk of leaving euro zone, and with China under the risk of capital controls. Many Chinese people are now using cryptocurrency as means to transfer large amounts of their yuans abroad, into other foreign currencies.
And there are more correlations in store, as we just only starting to get some history to analyze.
Oops, Bitcoin Did it again!Comments Artur Azizov, the B2Broker CEO
Bitcoin did it again. On Saturday, August,5, it refreshed the historic high surging to $3,300 from around $2,800 the day before. It added almost 18% in value, and may definitely keep going. The current surge of Bitcoin has increased the market capitalization to more than $50 bln — $51,737,289,581.
We need to say the first attempt to break the psychological $3,000 level was made on August,1, when UASF was activated. However, that time Bitcoin was able to touch only $2,900, before it reversed the move on the back of uncertainty.
Certainly, the sharp appreciation of Bitcoin was mostly based on the understanding that Segregated Witness activation is inevitable. Moreover, the market believes in the first cryptocurrency again after it survived without any troubles the recent events, including Bitcoin Cash hardfork. By the way, Bitcoin Cash (Bcash, BCC) has lost around 30% in its value.
So what’s next? The future for Bitcoin has become brighter after it confirmed its positions in the world markets, thus, we think the further appreciation of the cryptocurrency is a settled thing. The nearest target for Bitcoin may be around $3,450, once the current resistance at $3,250 is broken.
How To Trade Bitcoin When It FallsSince the start of 2017 Bitcoin, the most popular cryptocurrency, surged three times to the peak $2,889 reached on June, 12. It means that even if you were not smart and proactive enough to buy it at $200 in 2015, you could still have earned 312 per cent, if you bought it in January. If your investment was $1,000 you would have had $3,120 by now.
But how to trade it right now, when it experiences the period of increased volatility?
On Sunday, July, 16, Bitcoin fell below $US2,000 for the first time during two months, and hit a weekend low of $1,812 before going back towards $US2,000.
Right now everybody is talking about disagreements among the currency developers over the future of the blockchain platform the currency is traded on.
The zero hour was on July, 21, as a test run of a revised platform with faster transaction speed was performed. That day more than 90 per cent of the market took up higher-speed network. So, for now there are high chances the platform will be introduced permanently from August, 1.
But that fact is actually priced in, and there are high chances to see selloff of Bitcoin after the initial shoot up? And as the history shows when cryptocurrency is sold, it may lose about 50% of its value. We saw it late 2013, when the currency surged almost 8 times during a couple of months, but then lost about 25% in three weeks, and 50% in 4 months.
You have already lost the opportunity to earn on Bitcoin rise, so this is the time to correct mistakes and get profit on its fall.
You Think Low Chances To Profit On Bitcoin?Yes, I have to disappoint you – you have little chances to earn maximum profit on crypto currency. Just because the most popular of them has already made from 300 to 5,500% since the start of the year. And it looks like the market took a pause.
However, it doesn’t mean Bitcoin has no potential to add another 5,500%. Just back in January I remember the widespread opinion about Bitcoin – it peaked at $945, and hardly had chances to break above $1,000.
Then there was another splash of disappointment in March, when it reached $1,270, but later had three weeks of selloff falling to $905. But since that time we saw Bitcoin touching $2,889, meaning that if you bought it even at March peaks, you would have more than doubled your investments.
And now is my idea - catch retracements. The history shows that there is always a correction after huge bullish trend, and in most cases it amounts up to 50% of the uptrend. And these retracements offer perfect opportunities to enter the market at very attractive levels.
So, my take is to sell at current levels with the nearest target at $2,200, and wait. As soon as the selloff is over we gonna see another swing higher with a potential to see another 100% rise!
