Don’t Be Spooked By Bitcoin’s 15% Drop, Now Is The Perfect Time To Make Profits
But bitcoin may not recover as soon as people think, as bears are now taking advantage of what once was a panic-induced sell-off.
Bitcoin is approaching $40,000 for the second time in the past two days. It is very likely that bears are trying to drive the price down or investors are deciding to take profits for now. $40,000 is a very strong support for bitcoin. If bears manage to take over this level, the next support would be $38,000.
Meanwhile, two indicators suggest that bitcoin’s price is undervalued.
The MVRV ratio is an asset’s market capitalization divided by realized capitalization.The higher the number is, the more unrealized profit or loss is in the market, indicating that the asset is overbought. While a decreased number suggests the asset has entered an oversold level. The MVRV ratio for bitcoin is decreasing as people panic sell, which is actually healthy for the market in the medium term.
In addition, the crypto fear & greed index has plunged to a three-month low of 27 out of 100. This index is used by many investors to decide whether the dip is present, because many short-term investors like to “buy the fear, sell the greed.”
Analysts point out that bitcoin could be mimicking its moves during March 2020, when the crash of the stock market took bitcoin down to $3,000. Then bitcoin bounced back and reached its all-time high in the next few months.
Either way, investors are braced for more volatility.
How to make money from price swings?
Futures trading is one of the most popular tools to grow your wealth. You can benefit from price swings to earn money by speculating the direction of crypto’s price.
For instance, if you use 0.1 BTC and 100x leverage to short bitcoin at $40,000, when bitcoin drops to $35,000, you will earn ($40,000 – $35,000) * 10 BTC/$35,000 = 1.42 BTC.
Bexplus is a leading crypto derivatives platform accredited by MSB (Money Services Business). Bexplus offers 100x leverage in BTC, ETH, ADA, DOGE, and XRP futures contracts. Headquartered in Hong Kong, Bexplus is trusted by over 800K traders from over 200 countries/regions, including the USA, Japan, Korea, and Iran. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.
Why Trade on Bexplus?
- No KYC, No Information Leakage
Registration only requires your email confirmation and will only take a few minutes. Upon registration, you will get a real trading account and a demo account with 10 BTC for practice.
- No Deposit Fee and Fast Withdrawal
No deposit fee is required, you can start your deposit at 0.001 BTC. To withdraw your deposit, you only need to file the request and confirm it by email. Withdrawal is 24/7 and it can take as less as 1 hour during work hours.
- Mobile App
How to take a break from trading when bitcoin trades around the clock? The top-ranking Bexplus app helps you better manage your account. With the 24/7 notification, you can stay updated with the market. All data and assets can be accessed through all kinds of devices including desktops, mobile phones, and tablets.
- 100% Bonus to Help You Maximize Profit
Double deposits, double profits. Users can get a 100% deposit bonus for every deposit on Bexplus. If you deposit 1 BTC, 2 BTC will be credited to your account, and the profits gained with the bonus are withdrawable.
Click here to register, get a 100% bonus and 10% fee reduction.