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The Crypto market opens in 2021 with big rallies. ETH surges to $1,000 from $750 within 2 days, recording an over 30% gain. Bitcoin topped $34,000 for the first time on Sunday, rising more than 10% in the first few days of January. Although Bitcoin has slid lower to $32,000, it has delivered a more than 300% gain in 2020.
Bitcoin outlook buoyed by inflation expectation brought by fiscal and monetary stimulus measures amid the COVID-19 pandemic. Wall Street companies stepping in to accumulate more cryptos to hedge inflation has sent signals to the market, thus pushing cryptos’ prices higher. Even The New York Times took notice of Bitcoin’s recent rally, stating that the new rally is “with less talk of a bubble”.
While the markets generally share bullish sentiment regarding the long-term outlook for BTC and ETH, several technical indicators suggest that they are overbought at the moment, and traders should watch out for pullback.
One technical indicator calling attention is the bearish Shooting Star candlestick at the 200% Fibonacci expansion($35,114). Forms during an uptrend, a shooting star candlestick has a long upper shadow and little or no lower shadow. Shooting stars often suggest a potential price top and reversal. The momentum of Bitcoin could exhaust at Fibonacci resistance and take Bitcoin back to $30,000. The next psychological support under 30K would be the December high of $28,244.
“The parabolic move in Bitcoin in such a short time period, I would say for any security, is highly abnormal,” investor David Rosenberg said last week that both the stock market and Bitcoin were showing massive bubbles.
Massive influxes of money are pouring into the crypto market in the past few days. This could mean retail investors are confident enough to place their bets, or people are driven by FOMO again. Either way, traders should beware of the downside risks and take precautions to hedge risks.
Hedge loss and earn profits with futures trading
BTC futures trading enables traders to long or short BTC, so traders can earn money as long as their predictions are right. While spot traders only earn profits when the price of bitcoin goes up. Furthermore, traders can borrow leverage from exchanges to increase their buying power, thus multiplying their profits.
Bexplus is a leading crypto derivatives platform offering 100x leverage in BTC, ETH, EOS, LTC, and XRP futures contracts. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.
• Demo account with 10 BTC
Bexplus is one of the few exchanges that offer a free demo account, which puts you through its rules and trading widgets. Inside the demo account is 10 BTC for traders to practice and try out strategies as much as they like.
• BTC Wallet: up to 30% Annualized Interest Without Any Risks
Bexplus users can gain profits not only from trading. Join the Bexplus wallet to earn up to 30% annualized interest without taking risks. With up to 30% annualized interest, it is no doubt one of the most profitable rates in the industry.
While most lending platforms require traders to deposit at least 1 BTC, traders can make a deposit starting from 0.05 BTC on Bexplus.
• Trade Freely on Android & iOS
The top-ranking Bexplus app integrates all the necessary functions and tools (real-time charts, a variety of indicators, news alerts and etc.) while keeping a minimalist and intuitive interface. With the Bexplus app, you can manage your account anywhere and anytime you want. Furthermore, the 24/7 notification could keep you updated with big price movements, making it easier to secure your positions.
• Deposit Activity to Earn 100% BTC Cashback
Deposit BTC in the Bexplus account and you can earn a 100% BTC bonus, which can also be used to trade futures contracts. Plus, more margins reduce the likelihood of forced liquidation. The more deposit, the more bonus you will get. 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!