Author: SimpleFX

Author: SimpleFX
2

A closer look at Bitcoin and trading it

Understanding Bitcoin can be a daunting task for the average investor. Bill Gates is against the use of the cryptocurrency, citing its link to illegal drug purchases and that it allows money laundering for illegal gangs.

In contrast John McAfee, the founder of the antivirus software, is a fan and sees Bitcoin trading at $500,000 by 2020. Some see Bitcoin as here to stay and an it can only gain in value, while others watch it as a strange, but interesting anomaly from the sidelines. Making sense of it can be a challenge, but opportunities are to be found for those willing to brave new territory.

Bitcoin changing our lives?

Bitcoin itself is based on a disruptive new technology called Blockchain. It has been said that just as the internet changed the way we communicate, Blockchain will change the way we do business.

Blockchain offers a change in the way assets are transacted allowing for a decentralized shared ledger. If that doesn't help you much, here is an example of its use. In 2017 there was a Salmonella outbreak in Mexican papayas.

Normally tracing products for a recall can take weeks, and sometimes months. However, via the use of the Blockchain technology, Amazon's tracking of the affected Mango fruit only took seconds. If you spread the use of this technology across all areas where traceability would be beneficial, such as pharmaceuticals, supply chains, and land registries the advantage is obvious. Instant traceability, easily accessible, will save time and expense.

Plenty of industries waste millions and millions of dollars just waiting for supply chain information to filter through. So, in a way, Bitcoin has become an expression of this new pioneering technology.  The mantra is set; invest in the future, invest in Bitcoin.


Assessing the true value of Bitcoin

However, Bitcoin is a fiat currency, so called because it is considered legal tender, but is not backed by a physical commodity. Unlike Gold or Copper for instance. So, in this sense, the value of Bitcoin (BTC/USD) is determined by the value ascribed to it by two parties agreeing on its value.

The agreed value of Bitcoin, perhaps rather unsurprisingly, has been particularly volatile as people consider its true value. At the start of 2017 Bitcoin was trading at around $1,000. In December of 2017 price rose nearly as high as $20,000. That is one wild ride. Price is currently sitting at around the $6600 handle. Volatility, while posing large risk if improperly managed, can also provide great trading advantages.


With such varied and intense interest technical analysis allows traders to define and limit their risk as they navigate the volatile price of Bitcoin. For example, the 100 daily moving average provided investors two excellent places to buy BTC/USD In July and September of 2017. Many traders used these levels to lean against as they bought into the quick ascent of Bitcoin in the second half of 2017.


Again, In January of this year, a daily supply level was formed which led to falls in Bitcoin during February and March. The demand level formed in the $5,000 to $8,000 region and led to a rise in March this year as price just shrunk back from the $1,000 handle.


In the chart below price approached the $10,000 handle in April and May. As it headed towards the upper end of the Bollinger bands, indicating an overbought market, that region coincided with the 200 daily moving average.

Traders leant against that level and price was contained before it dropped to approach the yearly lows at around the $6,000 handle in June of this year. Traders defined and limited their risk using the 200 DMA as a reference point.


So, Bitcoin may be the shop window for a new technology, but it trades in a very traditional way using technical analysis. This is, after all, probably unsurprising seeing as traders around the world share the same tools of their trade in order to define and limit their risk.

Whether it be Fibonacci retracements of recent swings, support and resistance levels, moving averages or any other form of technical analysis; BTC/USD is ready to be bought and sold. There are also great trades to be had as different comments are made about the viability or otherwise of Bitcoin.

When JP Morgan's Jamie Dimon called Bitcoin a fraud in September 2017, the value plummeted 8% in just one day. A tidy profit can be made there for the observant market participant. In February of this year the value rose by 9% in a day on news that regulation out of South Korea was going to be softer than the market anticipated. Everyone wants to know; will Bitcoin last or fade? 

Whether, Bitcoin appreciates or depreciates, opportunities present themselves for those willing to brave the new world of Bitcoin and trade a complex technology in a simple way using time honored technical analysis. Bitcoin presents a wealth of opportunities for those prepared. Trade wisely, trade simply.

View More

View Full Article with Comments 2

Author: Forex Live
3

Fundamental vs. Technical Analysis - what's best?

"What should I use when looking at the markets, fundamental or technical analysis?" So TA or Fundamentals? Join the webinar! This is a question which is regularly asked by who anyone who wants to get into trading and most likely, one of the first questions all of us had when we started looking at the markets.

View More

Fundamental vs. Technical Analysis - what's best?


Author: Forex Live
Category: Education
3


"What should I use when looking at the markets, fundamental or technical analysis?" So TA or Fundamentals? Join the webinar! This is a question which is regularly asked by who anyone who wants to get into trading and most likely, one of the first questions all of us had when we started looking at the markets.

Asset 24 View More
Trump says 20% tariff coming on European cars if EU tariffs aren't removed
Asset 41

Author: FBS

Ichimoku indicator: Tips & insights

Some insights on the usage of the Ichimoku indicator The Ichimoku indicator stands out among other technical indicators. It's just another thing in technical analysis that came from Japan. Its name is translated as "one glance". The idea is that it allows traders to make a full-fledged judgment about the market after just several seconds of gazing at the chart.

View More

Ichimoku indicator: Tips & insights


Author: FBS
Author: FBS
Category: Education
0
Some insights on the usage of the Ichimoku indicator The Ichimoku indicator stands out among other technical indicators. It's just another thing in technical analysis that came from Japan. Its name is translated as "one glance". The idea is that it allows traders to make a full-fledged judgment about the market after just several seconds of gazing at the chart.

Asset 24 View More

Author: Adam Button
34

Video: Trade like a pilot with this one simple technique

In this video I talk about a trading taboo Affordable, safe commercial aviation might be humanity's most impressive achievement. We discovered flight just over a 100 years ago. One in 11 million people die in a plane crash. One in 5000 die in a traffic accident. You're 10 times more likely to be hit by lightning than in a commercial airplane.

View More

Video: Trade like a pilot with this one simple technique


Author: Adam Button
Category: Education
34
In this video I talk about a trading taboo Affordable, safe commercial aviation might be humanity's most impressive achievement. We discovered flight just over a 100 years ago. One in 11 million people die in a plane crash. One in 5000 die in a traffic accident. You're 10 times more likely to be hit by lightning than in a commercial airplane.

Asset 24 View More

Author: Adam Button
45

The 'second demographic transition' might be the greatest long-term threat to markets

Where have all the children gone? In the long-term, the answer to every question is demographics. Changing ages and populations determine an enormous portion of which companies and countries will be successful.

View More

The 'second demographic transition' might be the greatest long-term threat to markets


Author: Adam Button
Category: Education
45
Where have all the children gone? In the long-term, the answer to every question is demographics. Changing ages and populations determine an enormous portion of which companies and countries will be successful.

Asset 24 View More

Author: Adam Button
19

Context is everything when it comes to CFTC positioning data

Why it's valuable, but not in a vacuum Bloomberg has a bit of a takedown on CFTC positioning data as a contrarian signal of FX moves. They only look at EUR/USD trade, which is a narrow scope and looks at the net euro position as a percentage of open interest compared to moves over the next four weeks (which is also a narrow timeline).

View More

Context is everything when it comes to CFTC positioning data


Author: Adam Button
Category: Education
19
Why it's valuable, but not in a vacuum Bloomberg has a bit of a takedown on CFTC positioning data as a contrarian signal of FX moves. They only look at EUR/USD trade, which is a narrow scope and looks at the net euro position as a percentage of open interest compared to moves over the next four weeks (which is also a narrow timeline).

Asset 24 View More

Author: Forex Live

Video: Let's talk about the BOE's struggles and what does Bill Gates not get about cryptocurrencies?

A short chat between Adam and eToro's senior market analyst, Mati Greenspan The Bank of England is facing some struggles to angle the market towards a rate hike tomorrow or in August. With cable at an inflection point, how does the central bank go about it? In this video, Adam speaks with Mati from eToro on that and they also discuss on Trump's relationship with the US dollar. To round it off, they touch on crypto - which eToro is a well-known believer of - and what does the likes of Bill Gates and Warren Buffet not understand about crypto, as well as how to .

View More

Video: Let's talk about the BOE's struggles and what does Bill Gates not get about cryptocurrencies?


Author: Forex Live
Category: Education
0
A short chat between Adam and eToro's senior market analyst, Mati Greenspan The Bank of England is facing some struggles to angle the market towards a rate hike tomorrow or in August. With cable at an inflection point, how does the central bank go about it? In this video, Adam speaks with Mati from eToro on that and they also discuss on Trump's relationship with the US dollar. To round it off, they touch on crypto - which eToro is a well-known believer of - and what does the likes of Bill Gates and Warren Buffet not understand about crypto, as well as how to .

Asset 24 View More

Author: Greg Michalowski
2

Trading education: Fear is up as the stocks tumble. How can you deal with fear in trading?

Instant replay of the weekend video... Oh boy, the stock market tumble is making a lot of people fearful.  That is never good.  If you are too fearful, you are crowding out the chance to succeed.  

View More

Trading education: Fear is up as the stocks tumble. How can you deal with fear in trading?


Author: Greg Michalowski
Category: Education
2
Instant replay of the weekend video... Oh boy, the stock market tumble is making a lot of people fearful.  That is never good.  If you are too fearful, you are crowding out the chance to succeed.  

Asset 24 View More

Author: Justin Low
2

I went against one of my trading principles last week and here is what happened

A real example of Greg's lesson over the weekend Greg's video highlighted a key lesson in trading: Don't let fear crowd out your chance of success in trading.

View More

I went against one of my trading principles last week and here is what happened


Author: Justin Low
Category: Education
2
A real example of Greg's lesson over the weekend Greg's video highlighted a key lesson in trading: Don't let fear crowd out your chance of success in trading.

Asset 24 View More

Author: Greg Michalowski
34

Don't let fear crowd out your chance of success in your forex trading

Forex educational video Fear can get out of hand in your life and in your forex trading. If you let it get the best of you, your chance of success starts to dwindle. Don't let it happen to you.

View More

Don't let fear crowd out your chance of success in your forex trading


Author: Greg Michalowski
Category: Education
34
Forex educational video Fear can get out of hand in your life and in your forex trading. If you let it get the best of you, your chance of success starts to dwindle. Don't let it happen to you.

Asset 24 View More

Author: Adam Button

With volatility elevated, it's a great time to have a look at equities

The world is full of opportunity What do you think of equities?

View More

With volatility elevated, it's a great time to have a look at equities


Author: Adam Button
Category: Education
0
The world is full of opportunity What do you think of equities?

Asset 24 View More

Author: Mike Paterson
146

It's time for me to go, but I hope I passed the audition

It's the end of my time at ForexLive and here's a few final thoughts 12 April So here it is. My final offering and a bit more than 3 lines. What started as a 3-day audition ends after 5 years 2 months and 30,000+ posts. Seems like a lifetime to you? Yep, well try sitting this side of the fence! It's been a journey for sure.

View More

It's time for me to go, but I hope I passed the audition


Author: Mike Paterson
Category: Education
146
It's the end of my time at ForexLive and here's a few final thoughts 12 April So here it is. My final offering and a bit more than 3 lines. What started as a 3-day audition ends after 5 years 2 months and 30,000+ posts. Seems like a lifetime to you? Yep, well try sitting this side of the fence! It's been a journey for sure.

Asset 24 View More

Author: Adam Button
16

Even the greatest trade can be destroyed by horrible luck

The tale of André-François Raffray Bad luck is as old as humanity. Any casual historian can tell you of dozens of turning points in history that were battles won by pure luck.

View More

Even the greatest trade can be destroyed by horrible luck


Author: Adam Button
Category: Education
16
The tale of André-François Raffray Bad luck is as old as humanity. Any casual historian can tell you of dozens of turning points in history that were battles won by pure luck.

Asset 24 View More

Author: Forex Live
17

Japanese candlesticks: Lifehacks & tips

 How to use Japanese candlesticks Japanese candlesticks represent the best type of a chart. It surpasses the line chart significantly and is just more visually pleasurable than the bar chart. Knowing that technical indicators have plenty of drawbacks (they lag, they redraw, they are too ambiguous) understanding price action itself is a must. Japanese candlesticks in this sense can give traders a pretty good idea of what was and what is happening at the market and (surprise!) help them find the most likely scenario for the future.

View More

Japanese candlesticks: Lifehacks & tips


Author: Forex Live
Category: Education
17
 How to use Japanese candlesticks Japanese candlesticks represent the best type of a chart. It surpasses the line chart significantly and is just more visually pleasurable than the bar chart. Knowing that technical indicators have plenty of drawbacks (they lag, they redraw, they are too ambiguous) understanding price action itself is a must. Japanese candlesticks in this sense can give traders a pretty good idea of what was and what is happening at the market and (surprise!) help them find the most likely scenario for the future.

Asset 24 View More

Author: Eamonn Sheridan
8

$50bn in tariffs to $150bn ... Trump triples down

Breaking news from the US President, he has instructed Treasury to consider an additional USD 100bn in tariffs on China trade  Post on the breaking news from a while ago is here:

View More

$50bn in tariffs to $150bn ... Trump triples down


Author: Eamonn Sheridan
Category: Education
8
Breaking news from the US President, he has instructed Treasury to consider an additional USD 100bn in tariffs on China trade  Post on the breaking news from a while ago is here:

Asset 24 View More

Author: Greg Michalowski
43

March is done and dusted. What can we look forward to in the EURUSD in April?

Something more than what we experienced in March? It is month end/quarter end for most traders.  Good Friday is today and most traders are taking the day off.  So it makes sense to take a broader look at the EURUSD.

View More

March is done and dusted. What can we look forward to in the EURUSD in April?


Author: Greg Michalowski
Category: Education
43
Something more than what we experienced in March? It is month end/quarter end for most traders.  Good Friday is today and most traders are taking the day off.  So it makes sense to take a broader look at the EURUSD.

Asset 24 View More

Author: Adam Button
61

Here is the rundown on the new set of regulations coming to European forex trading

European Securities and Markets Authority lowers leverage The wild-west days of trading in foreign exchange are slowly being curbed. At one point, 200:1 leverage was standard and it seemed anyone, anywhere could open a broker.

View More

Here is the rundown on the new set of regulations coming to European forex trading


Author: Adam Button
Category: Education
61
European Securities and Markets Authority lowers leverage The wild-west days of trading in foreign exchange are slowly being curbed. At one point, 200:1 leverage was standard and it seemed anyone, anywhere could open a broker.

Asset 24 View More

Author: Eamonn Sheridan
11

Move over Big Mac, now its the Latte Index of currency valuation

The Wall Street Journal has put together a , using purchasing-power parity (PPP) (i.e. comparing the cost of the same good in different countries) - to estimate which currencies are overvalued and undervalued

View More

Move over Big Mac, now its the Latte Index of currency valuation


Author: Eamonn Sheridan
Category: Education
11
The Wall Street Journal has put together a , using purchasing-power parity (PPP) (i.e. comparing the cost of the same good in different countries) - to estimate which currencies are overvalued and undervalued

Asset 24 View More

Author: Mike Paterson
7

BOE looming large but what's the likely outcome?

Bank of England interest rate decision at 12.00 GMT 22 March It's been covered a few times but as always it's customary to throw a few thoughts into the pot despite my "trade what you see" approach so here's what I think we should be looking out for fwiw:

View More

BOE looming large but what's the likely outcome?


Author: Mike Paterson
Category: Education
7
Bank of England interest rate decision at 12.00 GMT 22 March It's been covered a few times but as always it's customary to throw a few thoughts into the pot despite my "trade what you see" approach so here's what I think we should be looking out for fwiw:

Asset 24 View More

Author: Forex Live

Trading Cryptocurrency with SimpleFX: Step by Step Guide

This article is provided by SimpleFX, a forex and CFDs broker Few months back FX and CFD broker SimpleFX launched its . In this article we will walk you through the process, from download to placing your first trade. If you but are unsure how to get started, you can now consult this simple guide to a simple trading platform.

View More

Trading Cryptocurrency with SimpleFX: Step by Step Guide


Author: Forex Live
Category: Education
0
This article is provided by SimpleFX, a forex and CFDs broker Few months back FX and CFD broker SimpleFX launched its . In this article we will walk you through the process, from download to placing your first trade. If you but are unsure how to get started, you can now consult this simple guide to a simple trading platform.

Asset 24 View More

Author: Adam Button
3

The output gap is like a lot of things in economics: It works in theory

Don't mind the gap The Bank of Canada was talking about the output gap way before it was popular. It's been the central bank's guiding light for years. A report the BOC released Friday shows they might be having second thoughts.

View More

The output gap is like a lot of things in economics: It works in theory


Author: Adam Button
Category: Education
3
Don't mind the gap The Bank of Canada was talking about the output gap way before it was popular. It's been the central bank's guiding light for years. A report the BOC released Friday shows they might be having second thoughts.

Asset 24 View More

Author: Adam Button
36

Video: I won a shareholder lawsuit

I didn't see this one coming I tell the improbable story of how I won a shareholder class action lawsuit. It took more than 10 years but it paid off and I learned a few strange lessons about trading.

View More

Video: I won a shareholder lawsuit


Author: Adam Button
Category: Education
36
I didn't see this one coming I tell the improbable story of how I won a shareholder class action lawsuit. It took more than 10 years but it paid off and I learned a few strange lessons about trading.

Asset 24 View More

Author: Adam Button
56

Video: The 3 big problems in the world

The progress of the past 100 years was incredible, but the next steps are tough In my , I talked about how we've already solved the 5 great problems of the 20th century. But it's not all rosy because in this video I look at the landscape and ahead to future and talk about the three great problems this century and how they will be very difficult to solve.

View More

Video: The 3 big problems in the world


Author: Adam Button
Category: Education
56
The progress of the past 100 years was incredible, but the next steps are tough In my , I talked about how we've already solved the 5 great problems of the 20th century. But it's not all rosy because in this video I look at the landscape and ahead to future and talk about the three great problems this century and how they will be very difficult to solve.

Asset 24 View More

Author: Adam Button
19

Pump-and-dump schemes are getting smarter in crypto and everywhere else

It's the oldest scheme in the book, but it still works The CFTC is out with a warning about pump-and-dump schemes in cryptocurrencies. People promoting stocks and then dumping them have been around as long as stock markets. It's the premise of The Wolf of Wall Street and the birth of the internet added an entire layer.

View More

Pump-and-dump schemes are getting smarter in crypto and everywhere else


Author: Adam Button
Category: Education
19
It's the oldest scheme in the book, but it still works The CFTC is out with a warning about pump-and-dump schemes in cryptocurrencies. People promoting stocks and then dumping them have been around as long as stock markets. It's the premise of The Wolf of Wall Street and the birth of the internet added an entire layer.

Asset 24 View More

More Headlines


By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookies