Much has been written about Bitcoin and its potential $100,000 price targets. When it was at $20,000 last December, a $100,000 price target didn’t seem ludicrous. Many traders have been looking for a good level to get back in, but how do you catch a falling knife?
Retail clients may have seen much or perhaps all of their previous profits eroded with trying to find entry points for the long position again but there may be one major reason why this price has failed to gain traction as yet. I previously wrote about how the institutions may have helped pull the price down so that they could gain a better value entry point themselves but I’ll let you read that here but this is not why I am writing this article.
Professional traders will, among much of their other analysis, look for gaps on charts. So if the Dow were to open 60 points higher than its previous close, they would predict that this gap will fill and shorten it back to where it closed.
Contents
So why is this relevant?
Well, Bitcoin is now beyond its infancy stage so technicals are gradually becoming more useful when trying to read this market and it is my view that Bitcoin still has 1 decent sized gap that might need to be filled before we see the rise that so many are waiting for. You can easily make a fool of yourself by publishing articles that call the top or the bottom of a market so I rarely do but if you are at a point where you cannot see when this current bear trend will finish then this might help.
“Tradeview has been the online broker pioneering the push for improved spreads on Bitcoin”
As an example:
August 11th, 2017, Bitcoin closed at 3577.29 (tiny differences depending on your source but they are all similar) and Sunday, August 13th, 2017 it opened at 4141.26 never filling the gap, until yesterday November 25th, 2018. Since then we have seen a small rally which often happens after a fill and allows the technicals to move back out of oversold territory but August 4th, 2017 has an unfilled gap at 2875.96 which if the price should return to fill this gap, could provide the springboard needed. If you are one of those who believes that Bitcoin still has a relevant place in today’s market place then building small positions at and around this level may prove to be beneficial for the long term investment.
Most brokers will offer a spread of $70 to $90 on Bitcoin, perhaps if you’re lucky, as low as $40 but that is still some move before you can get up to break-even whereas Tradeview has been the online broker pioneering the push for improved spreads on Bitcoin and all other instruments for its clients so that profits are quicker and easier to come by. At the time of publishing, Tradeviews spread on Bitcoin is just 11 cents so you’re almost at break-even from the outset. Put another way it is almost 400 times cheaper than its main rivals.
So come and open a live or demo account here; avoid the huge spreads you used to pay. With this demo account, you can test different types of strategies and see what works for you. Feel free to contact me with the info below.
Adam Saward
Head of UK
asaward@tvmarkets.com
