Here’s how pros safely trade Bitcoin while it range trades near $40K


Bitcoin is one of the most volatile assets in the world. As we all know, it’s extremely risky to buy any currency at the top of its market, and then sell it when it’s at the bottom. However, one of the best ways to make money when trading cryptocurrencies is to buy low and sell high. That’s what professional traders and investors do.

Bitcoin is currently trading at its highest price since September 2017, with the market cap of all outstanding cryptocurrency at all time highs. Most of the world’s top investors agree that Bitcoin is at the beginning of a major bull run, and the world’s top traders have been making a fortune by betting on Bitcoin’s rise. The problem is, trading Bitcoin while it is range trading near $40K is extremely risky, and could result in a loss if you are not well-versed in the market. So, if you want to safely trade Bitcoin, I would recommend checking out a company called

Bitcoin is one of the most popular cryptocurrencies, and it’s been in a downtrend for a while now. However, it recently managed to break out of its downtrend and raise above the $40,000 USD mark. Will this be the bottom of the trend? Or will it continue to rally, despite the negative news and economic issues?. Read more about bitcoin to surpass $100k by 2021 and let us know what you think.

Investors tend to define the market as bullish or bearish, but sometimes the price can stay in a range for a long time. This type of sideways movement is not necessarily stable, as cryptocurrency markets are highly volatile due to a number of uncertainties and the early cycle of cryptocurrency adoption. For example, investors who concluded that the bitcoin (BTC) bull run was over after the first week of 2021 are likely to regret that decision. Coinbase Bitcoin price in US dollars, January 20 г. Source: TradingView Here’s how pros safely trade Bitcoin while it range trades near $40K Since 8. In January, the bitcoin price is moving in a bearish channel near $10,000. The movement continued for 26 days until it finally broke out in early February. Bitcoin price on Coinbase in USD, August 2020 г. Source: TradingView Here’s how pros safely trade Bitcoin while it range trades near $40K Bitcoin experienced two distinct fluctuation periods in August and September 2020. However, these movements cannot be considered a bull market. On the other hand, the bears had little reason to cheer, as the $10,000 bottom was tested several times, but the market recovered after that.

Is the bitcoin price in a rising channel?

Although it seems premature, it is possible that bitcoin has entered positive territory and is aiming for $40,000 by the end of June. Coinbase bitcoin price in US dollars, current. Source: TradingView Here’s how pros safely trade Bitcoin while it range trades near $40K The current range is $37,000 to $43,000 as of the 25th. June on, but because cryptocurrencies are extremely volatile, channel support and resistance levels are sometimes heavily challenged. There is reason to believe that the upcoming short squeeze could quickly push bitcoin back towards the $50,000 mark, given that MicroStrategy has raised $500 million and Paul Tudor Jones plans to increase his position in BTC. On the other hand, there are concerns that US Treasury Secretary Janet Yellen’s comments on the use of digital assets for money laundering and illicit payments are threatening the price of bitcoin. In addition, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, recently expressed concern about the lack of regulation of crypto exchanges.

Smart traders take less risk when trading in therange.

For options traders, sometimes the best option is to bet on holding the current range, especially for the short term. This is where the herringbone spread strategy with put options comes into play. Deribit position builder profit and loss simulator. Source: Deribit Here’s how pros safely trade Bitcoin while it range trades near $40K Instead of betting on a rising or falling market, this option strategy uses protective puts to the advantage of traders with a neutral position. An investor will make a profit when bitcoin reaches 25. June remains between $37,170 and $44,000. It therefore offers protection against a movement of 8.5% in either direction. It involves buying a 2 BTC put for $36,000, selling a 3.33 BTC put for $40,000 and buying a 1.33 BTC put for $46,000. Each contract is signed on the 25th. June is here.

Herringbone Spread with Puts – Low Risk Strategy

With less than 11 days to go before the deadline of the 25th. June, we can assume that there is a high probability that the market will remain in this range. However, this strategy offers a maximum loss of 0.062 BTC ($2.515 to $40.570) in case of an unexpected move. In terms of profit, the strategy can yield 0.1375 BTC ($5,500) on $40,000. Therefore, it seems like a reasonable choice for an investor who expects the current upward momentum to continue. It should be noted that most derivatives exchanges offer options trading for as little as 0.10 BTC. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Every investment and every transaction involves risk. So you need to do your own research before making a decision.Bitcoin has made a lot of headlines in the past couple of weeks. A lot of positive press and a ton of excitement surrounding the digital currency. However, the momentum has been missing what I call the “trend-following” phase. Right now, it’s close to a range-bound scenario of $40K-$50K. Most of the traders are waiting for this range to close at either the high point or the low, so they can open short positions or long positions.. Read more about btc at 40k and let us know what you think.

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Emilia James
By Emilia James

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