Tips On How Best to Handle Bitcoin Market Crashes

In a scenario where the price of Bitcoin is crashing, what would be the best reactions to take?

Below are a few things an investor can do to weather the storms of a market crash.

Maintain a Calm State of Mind
Trading Bitcoin mandates that one has a disciplined mind state, meaning that your emotions must be in check at all times. Allowing your emotions to cloud your judgment in unfavorable market conditions is never the best option and in most cases, ends in disappointment and regrets. What you should do instead is take a break, evaluate what is happening and make logical decisions.

Most times, it is best to do nothing rather than taking an action that might end up going against you.

Try Not to Obsess
Sitting in front of your screens all day is not going to change anything happening in the markets. Spending time making analysis and plotting charts is fine, but don’t waste hours obsessing over the predicament you might be facing. It is advisable to engage yourself with something more constructive.

However, if you still have to trade, select a limit order and move on to something else.

Do Not Lose Focus of the Main Aim
The fact that Bitcoin may be facing a crash at a time does not mean that the overall demand for Bitcoin is gone, it is usually just a temporary downturn. The crypto market possesses the most assorted investor base of any other sector, it is safe to say that the market will almost certainly bounce back.

Always adhere to your trading strategy. Do not let the current situation drive you to make drastic trading decisions only for the market to turn around days later, causing you further losses or opportunities.

The crypto market is an extremely erratic playing field and huge plunges and rallies are always expected.

Investors Choice: Could Bitcoin Be the New Gold?

Bitcoin is called “digital gold” due to the similarities it shares with real gold. However, a new counterfeit problem on gold is rocking the market. This has caused Bitcoin to gain more edge as a safe-haven over gold for investors.

Fake Gold Saturating the Markets
The image of the precious metal sector is being tainted by fake gold bars bearing official symbols of recognized refineries. About 1,000 of such forged bars have been uncovered by executives of the sector.

Normally, forged bars are formulated with cheap metals and are plated with gold on the exterior, this makes them easy to distinguish. In this case, however, the forged bars making rounds presently are real and are pure, the only counterfeiting factor here is the forged official symbol on the bars.

How Bitcoin Transactions Are Secured on the Blockchain
This counterfeit is coming at a time when demand for gold in the world is on the rise. Gold has always been regarded as a highly demanded safe-haven for investors during economic downswings.

In 2019, Bitcoin and gold rose alongside each other. Bitcoin has also been extolled as a rare asset and means of storing value. The dramatic rise of Bitcoin alongside gold gave rise to talks about the safe-haven quality of Bitcoin.

The issue of gold forgery in the sector has caused Bitcoin to take the “safe-haven” spotlight. The new development has highlighted a major advantage of Bitcoin over gold; it cannot be counterfeited.

Bitcoin is a digital currency based on a distributed ledger known as the blockchain. Bitcoin is transferred over blockchain through the use of an algorithm dubbed proof-of-work. This means that miners have to substantiate the block before it can be registered to the blockchain thereby making it almost impossible to counterfeit a transaction.

This form of security will foster the adoption of Bitcoin by investors as a safe-haven asset and will highlight the different ways in which Bitcoin is preferable to gold.

Brexit Aftermath: The Market Reaction of Bitcoin, Gold and Pound Sterling to Headline News in the EURO Zone

After the UK made it public to exit from the EURO bloc, the market cap for Bitcoin and Gold has increased almost by $133 billion and $1 trillion. Is this the Brexit aftermath?

As it is, the end may be near for Brexit. In the recent declaration an accord is reached between the British government and the EU, everyone is on the lookout for the final date Brexit will conclude. And based on this scenario, an analysis is drawn on the aftermath of this separation in the politics of the EURO bloc and the effect on the price of Bitcoin, Gold and pound sterling.

Bitcoin: Since the start of Brexit, Bitcoin’s market cap had spiked higher and recovered about $10 billion worth. Before Brexit, the cryptocurrency of the first choice had been stable in price after crashing to a market cap of about $2.9 billion low around January 2015. However, after the crash, the cryptocurrency had spiked to about 300% within 18 months while the next super halving of the project is expected on the network from 25 to 12.5 fresh Bitcoin’s per 10 minutes.

As of mid-2016, the most liquid GBP market was the London based Coinfloor exchange. The exchange did around 772 Bitcoins’ worth of volume that day, valued back then at around $4.9 million, with data from the technical back end at the Trading view.

The Pound Sterling: The British national currency had crashed by almost 20% on the night of the vote after hitting a momentary high of about $1.5 versus the USD for about 8 months. Since crashing to a low of about $1.2 as at March 2017, the Pound sterling had rallied 6% within a 4-week time frame, after the UK parliament decided to vote and activate the Article 50 while then the Brexit journey began for the UK taking it two years to discuss its planned exit from the EURO bloc.

Gold: The safe-haven asset also spiked higher around the same time frame from mid-March to mid-April 2017 with its price rising about 7% versus the USD. Nevertheless, this scenario didn’t play out on Bitcoin as in March 2017, beginning with its price at $1000, Bitcoin had surged to hit an all-time value of about $1300, as a result of markets expectation for a Bitcoin ETF being endorsed. However, after its nullification was declared on 10th March 2017, the cryptocurrency fell to a low of about $888 which occurred concurrently with the UK’s law passage for its exit from EURO bloc. Ever since then as the UK’s Brexit discussions with the EU raged on, so did the Pound against the US-dollar and Bitcoin gained more to its price.

Bitcoin, Gold, and Pound Sterling Reactions to Brexit
During this timeframe transversing Brexit discussion and its process, the Pound lost the majority of its 15% gains recovered, to tumble from a high of $1.43 to hit $1.20 on 3 September. In a similar multi-day timeframe, gold broke out of its basic $1400 resistance level to rally 15% versus the US-dollar. While Bitcoin gained higher, then again, stayed on the level around $8,000—yet the genuine story of those 17 months incorporates the cryptocurrency crashing towards $3,000 (December 2018) preceding the move spiking to a high of almost $14,000 in June this year.

New Consolidation Phase May Lead Bitcoin (BTC) To April 2 Surge Level If Key Support Breaks

Bitcoin (BTC) Price Analysis – October 9

For the past 15 days now, Bitcoin has been undergoing a consolidation phase after bouncing off at $77000 area in late September. With -0.29% loss over the past hours, the BTC price now fluctuates at around the $8200 zones. As the market waits for the next shock-wave, Bitcoin’s price may roll to $6400 – the April 2 surge level if a bearish surge resurfaces.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Key resistance levels: $8370, $8533, $8770. $8997
Key support levels: $7733, $7300, $7000, $6400

Following the September 30 sharp bounce at $7700, Bitcoin is currently fragile – subduing with choppy price action on the daily time frame. Again, the market is sensing a big move lurking around the corner. Breaking the key support zones at $7733 – $7300, BTC may plummet to $7000 and $6400 to meet the 4-months channel’s support.

BTCUSD-Daily-Chart-September-9

Currently, the price is still consolidating above the $8000 price zones. Should the bulls act upon these mentioned zones, Bitcoin may further correct to $8370, $8533, $8770 and $8997 resistance before we can continuing bearish rally. To top that, the crypto trading signals a strong bearish trend on the RSI but the market has managed to rise up on the Stochastic RSI since the beginning of the month.

Bitcoin (BTC) Price Analysis: 4H Chart – Neutral

Bitcoin has been shaping in a triangle pattern on the 4-hour chart and has remained indecisive for the past two weeks. The crypto trading signals that a potential surge in volatility may play out sooner or later. This pattern is a bearish formation with close supports at $7750 – a breakout area. A clear drive beneath the triangle might send the price to $7500, $7300 and $7000 support.

BTCUSD-Daily-Chart-September-9

But as it appeared now, Bitcoin is bullish on the RSI indicator, making its price to trade at around the triangle’s upper boundary. The price could float above $8000 if the RSI 50 can hold. Nevertheless, the $8400, $8533 and $8700 resistance could play out if a bullish surge occurs. Inversely, the crypto trading signals a bearish move on the Stochastic RSI to show that the sellers may step back in the market.

BITCOIN SELL SIGNAL

Sell Entry: $8197
TP: $7750
SL: $8350

BTC Bounces Off At $7750, Retracement Move May Lead To A Serious Sell-Off

Bitcoin (BTC) Price Analysis – October 1

Bitcoin is still bearish. What we are experiencing now is just a proper retracement to $9000 zone that was lost on September 24. Once Bitcoin reaches the mentioned zone, we can expect a massive dump to the $7000 price zone. The correction is normal for BTC to gather momentum for the next bearish move. As of now, the market is up by +3.59% with a more short-term bullish outlook.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Key resistance levels: $8600, $8800, $9000
Key support levels: $8200, $8000, $7750

The price of Bitcoin has struggled to hit $8500 earlier today after bouncing off at the $7750, which now holds as support. Currently, the market has slightly dropped to the current trading price at $8347. A bullish continuation could allow the market to further test the $8600, $8800 and $9000 resistance before resuming the bear rally.

BTCUSD-Daily-Chart-October-1

As we can see, Bitcoin is now trending in a new descending channel pattern following the wedge break-down on September 24. However, the crypto trading signals a potential buy on the technical indicators. If BTC rolls back, we might see a bearish extension towards the $8200. $8000 and $7750 support, the mid-year low.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

Bitcoin is now bouncing higher following the break above the descending trend line (white) along with the important $8000 resistance-turned-support. The buyers are now targeting $9000 resistance. Before then, Bitcoin needs to climb to $8512, $8700 and $8850 resistance. But now, the market is currently pulling back.

BTCUSD-Hourly-Chart-October-1

If the price further pulls lower, the BTC price may floor at $8250, $8142 and $8015 support to test the while line. The crypto trading signals a selling pressure on the Stochastic RSI. We can expect a buy-back as soon as the oscillator turns bullish. The RSI is now pointing downward to show a slight drop in price. If the RSI 50 can remain strong, a price will continue to rise.

BITCOIN BUY SIGNAL

Buy Entry: $8268
TP: $8888
SL: $8153