Bitcoin managed to recover $1,300 during the weekend and retook $19K, but its inability to make a clean break at $19,500 may put it in a dangerous sell-off position again.
One significant downward pressure comes from another $1,000 CME Bitcoin futures gap formed at the recent closing price of $18,115. Together with the gap at $17K, this CME gap may become an exit point for traders, thus bringing the price down.
Independent analyst Vince Price also warns that Bitcoin is about to enter an “upper resistance cluster”. Bulls have made multiple attempts to push Bitcoin past its crucial resistance of $19,500 and failed. Such momentum, based on the theory of Vince Price, could exhaust at the $17,000 level.
Those who bought bitcoin at high prices may be suffering from anxiety and doubt for the past few days. While huge price swings are typical for the crypto market, holding a losing position certainly doesn’t feel good. If you don’t want to sell low, there are ways to earn profits even in a downtrend.
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.
Let’s see how we can benefit from the price drop of bitcoin:
Assume we use 1 BTC to open a short contract when bitcoin was trading at $1,1000. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC.
One day later, the price of bitcoin dropped to $10,500.The profit will be ($11,000 – $10,500) * 100 BTC/$10,500 *100% = 4.76 BTC, making the ROI 476%.
Then the price of bitcoin got another hit and dropped to $10,000. The profit will be ($11,000 – $10,000) * 100 BTC/$10,000 *100% = 10 BTC, making the ROI 1000%.
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!
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