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?
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.
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?
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.
Follow Bitcoin’s 2019 resurrection and trade the trend
Not sure how to get started? No problem. Follow this step-by-step guide.