Bitcoinย bounces back:ย Is buying the dip worth the risk?ย
Bitcoinย has recovered some of its lossesย followingย itsย fallย from aย record high of $65,000.ย Considering theย crypto kingโs astonishing performance in 2021, should you โbuy the dipโ?ย
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Bitcoin pricesย attainedย a new record, breaking through $63,000 on April 14. Bitcoin, the world’s largest cryptocurrency,ย pushed towards $65,000ย yet analysts are already predicting its next record climb.ย Unfortunately, as is the case with anyย tradableย asset, once it reaches a record high,ย thereย will be a sell-off and the price drop that comes with it.ย ย Bitcoin plunged to $55ย 00 yet even now it’s rallying.ย
Given its performance in 2021 so far, we ask should you buy the dipย to profit when it rises?ย
In this article weย look at Bitcoin’sย meteoricย rise, whatย hasย pushed the crypto market and where the digital currency will go next.ย
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Bitcoin on fire – price doubled inย monthsย
Since the beginning of 2021, Bitcoinโs price has skyrocketed by more than 88% and its market capitalization is aboveย $1 trillion. Since the start of 2021. Bitcoin has more than doubled in value, from a low of $29,000 to a high of $63 000 in mere months.ย
ย The performance of the seminal digital currency is nothing short ofย meteoric; In April 2020, it was trading at about $7,000. Rival cryptocurrency Ethereumย has climbed in April,ย reaching its record of $2,205.ย
The Crypto rollercoasterย
Bitcoinsย rise however has been anything but smooth; the crypto market remains incredibly volatile and major dips follow every price record attainted. In the days following its record high of above $63 000, the assetย faced its next resistance level at $65,000.ย Unfortunately,ย it droppedย in value asย investorsย sold off the digitalย currencyย in order to capitalize on its value. As ofย April 21,ย however its price is rallying andย trading above $55ย 000.ย
Considering its record performance in 2021, investors still believe it could not only reach above $65 000 butย could reach beyond $70 000 soon.ย
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Next rally pointย
Demand for bitcoin and crypto has never been higher.ย ย
Despite inherent volatility inย anย unregulatedย market, Bitcoin bulls are still pushingย despite the dip.ย Analysts believe Bitcoin has entered a period of lower volatility while it consolidates before moving higher again.ย
Below you can see Bitcoinโs performance for the past 30 days:ย
Below you can see its performance in 2021:ย
Should you trade Bitcoin now?ย ย
Despite the dip many investors predict Bitcoin could hit $100 000 before the end of the year.ย It comes down to basic of trading โ buy low, sell high.ย Overall, trading crypto, especially Bitcoin, can be extremely volatile. The rewards however are great but so too are the risks.ย Find out how you can benefit from the crypto market at the end of this article.ย
Crypto goingย mainstreamย
ย A growing list of companies is embracing Bitcoin. The biggest sign of Wall Street’s growing acceptance of cryptocurrency isย Coinbaseย official listing on the Nasdaq on April 14. At a valuation of aboutย $100 billion, it gives continuing legitimacy to a market that was referred to as the “wild west of trading”.ย
Coinbaseโs debut marks the first official acceptance of the crypto market in mainstream markets.ย
Many companies and institutions have supported Bitcoin in 2021, including Goldman Sachs, Morganย Stanley,ย andย PayPal. Its biggest supporter is Tesla which investedย $1.5 billionย in Bitcoin and is accepting it as payment for its electric cars.ย
ย The rise of Dogecoin – the tradable memeย
ย Dogecoin, a minor cryptocurrency, has been propelled into the crypto market spotlight following an astonishing $50-billion market capitalization. Dogecoin’s price has already surged by 15 000% to 40 cents. In April Dogecoin’s price has climbed hovering around its all-time highs, closing on $1.ย ย
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Billions in crypto valueย
The crypto market is exploded in value over the past few years. Bitcoin currently has a total value of just over $1 trillion.ย Rival digital tokens Ethereum and Ripple XRP are worth $240 billion and $55 billion respectively.ย
ย Should you invest inย Bitcoin?ย
In short,ย there hasย never been a better time to buy Bitcoin, the profit potential isย staggering,ย andย itsย growth has attracted many mainstream retail and institutional investors.ย ย
It should be noted howeverย thatย crypto isย oneย ofย the most volatileย assetsย in the financial markets andย asย itsย performance in 2021 has shown, it can just as easilyย hitย $70,000ย inย days as it could tumble back to $40 000.ย
Fortunately, trading Bitcoin with a licensed broker, such asย CMTrading, offers a wide range of unique advantages to both trading beginners and experienced investors.ย ย
For example, one of the benefits offered toย CMTradingย clients is the access to powerful leverage which allows for high returns even with a smallย initialย investment.ย ย
Traders will be happy to know that with a leverage ratio of up to 5:1 on all cryptocurrency pairs, they can magnify their trading profits by 500%.ย
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More reasonsย youย should start trading Bitcoin withย CMTrading:ย
- Lowย initialย investment: Start trading your favourite cryptocurrencies with just $250.ย
- Buy or sell: You can open a buy tradeย toย profit when prices are going up, or simply open a sell trade instead,ย profitingย when its price falls.ย ย
- Negative balance protection: Even if you overleverage a positionย toย take advantage of increased profits, you will never lose more than yourย initialย investment.ย ย
- Your personalย trading specialist: Eachย CMTradingย client is assigned with a personal trading specialist who canย provideย educational materials, trading tips,ย insights,ย and advice around the clock.ย ย
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How toย get your share of theย actionย
You can join a community of 1 million registered clients thatย utilizeย the multi-award-winning platform ofย CMTradingย to access more than 150 tradable assets.ย ย
CMTradingย clientsย benefitย from buying or selling the top-performing cryptocurrencies including Bitcoin, Ethereum, Ripple and Litecoin via their desktop or mobile throughout the day.ย ย
Hereโsย how you can join them:ย
- Open a tradingย accountย
- Download theย trading platformย ย
- Start trading!ย
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If you have any questions, please do not hesitate toย get in touch withย one of our customer support representatives or your personal trading specialist!ย
Ready to start trading? Open an account todayย ย ย ย ย ย ย ย
Join CMTrading, the largest and best-performing broker in Africa, and discover more opportunities with an award-winning broker.ย Register here to get startedย ย ย ย ย ย ย ย ย ย ย ย
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