At this point, buying the lowest would be a pretty logical choice until proven otherwise, so let’s explain how to use the current trend to your advantage how to buy the lowest. Before looking at a specific strategy, let’s look at other important, not to say fundamental, aspects of Bitcoin currency. For the pillars of bitcoin this is important.
Trade Bitcoin CFD via MetaTrader 4
Indeed, it is possible to trade cryptocurrencies thanks to Admiral Markets, including BTC or USD. Traders can access BTC or USD and other cryptocurrency pairs using the MetaTrader 4 and MetaTrader 4 Supreme Edition plugins. In addition, all of the additional features for MetaTrader 4 Supreme Edition are now available for the latest version of MetaTrader 5 Supreme Edition.
To do this, simply follow the following steps:
- Download or open MetaTrader 4
- Open a new account or log into your trading account
- View a cryptocurrency chart (BTCUSD)
What influences Bitcoin volatility?
We can see that BTC volatility is high. Keep in mind that volatility is your friend as long as you apply appropriate risk management to your trading strategy. According to Forbes, Bitcoin gained popularity in China in 2013, and it was quite common to see Chinese stock markets leading the way in market rebounds, with bursts of up to 20%. It was not uncommon for traders to travel between Hong Kong and Shenzhen, making profits by arbitrage by selling Bitcoin using their smartphones in Chinese markets, withdrawing their earnings via bank or Alipay accounts and buying Bitcoin on the side of Hong Kong, where prices were more in line with international prices.
The current price versus the historical price: trend or range?
We can easily say that the price is trending, even in higher time units. When you spot a significant trend in long time units, it means that the power of the movement is also reflected in the lower time units. Consequently, shorter time units (H1, H4) are added to higher time units and theoretically allow intraday traders to benefit from significant gains. At this point, the current scenario is to buy the lows on the BTC or USD currency pair due to the established uptrend. To always stay up to date with cryptocurrency quotes, as well as possible moves and trading opportunities, Admiral Markets offers free live webinars with its professional and experienced traders and analysts.
Due to the lack of long-term historical data, we can only compare the current moment with recent history since 2012, but this should be more than enough to keep up with the trend and use various strategies that could give us much more profits than just buying BTC itself.
How to trade Bitcoin CFDs?
Trading Bitcoin CFDs is probably not much different from trading any other currency, commodity, or CFD pair showing a strong trend. The beauty of trading lies in its diversity, and thanks to studies on price action on Price Action, traders should be able to make profits that make them financially independent and stable. Bitcoin CFD traders should focus on:
- Surf the trend uptrend until proven otherwise
- Appropriate risk management
Focus on major listing sessions: London, New York and Tokyo.
Buying following a drop in BTC or USD is important because it gives traders the opportunity to position themselves with market consensus and benefit from the momentum. Sure, the trend will eventually change, but at this point, the BTC or USD is showing an exceptionally strong uptrend.