Monday , January 25 2021

Traders take advantage of the correction to buy more cryptocurrencies



Market value showed the largest cryptocurrencies showing double-digit corrections on Thursday (26).

The sudden decline scared investors, but there are those who remain positive.

On Twitter, traders are taking advantage of the decline to buy more digital currency.

Early Cryptocurrency Black Friday?

The Altcoin Sherpa trader is one of those who takes advantage of “Black Friday” early on.

Through his Twitter profile, he said:

“YFI: Right now I’m buying some high heels, climbing. I’m not at all, these are long-term positions. I don’t deny it, more falls can happen. You should be happy, cheaper altons are a good thing in my opinion. “

CoinStat CEO Narek Gevorgyan has highlighted the recovery of Bitcoin after major accidents:

“The price of Bitcoin has already earned $ 1,000 in today’s amendment.

Last 24-hour low: $ 16,334;

Current price: $ 17,340.

I am optimistic! ”

However, the rapid recovery did not last. At the time of writing, Bitcoin is priced at $ 16,619.48.

One of the traders known as UB on Twitter is committed to renewal. UB published a member of the famous group “The Haven”:

“I actually think a lot of people react too desperately to that correction.

The daily candle is certainly ugly, but there has been no help for the last 9 days.

In the end, we are in an area of ​​decent support, between $ 15,600 and $ 16,100. “

It’s a good time to buy

Wellington Silva, a trader and founder of the WS Trader education project, the time has come to buy more BTC.

Not sure about potential Bitcoin recovery. However, he cites studies that made it possible to make a profit in such situations:

“Bitcoin was down more than 10%, breaking all lows in the last 8 days and closing below the 21-day moving average of the daily chart.”

Below you can see the daily chart with the observation made in Wellington:

Bitcoin daily chart.
Bitcoin daily chart. Source: Wellington Silva / WS Trader

He then explains how the trader wants to proceed in the following scenarios:

“I always like to see data rather than knowing what might or might not happen with Bitcoin. So I used a back test to test the historical statistics of this type of Bitcoin event using data from 2013 to 2020. ”

Wellington’s results were as follows:

Consequence of BTC price changes
Conclusion on BTC price changes. Source: Wellington Silva / WS Trader

He concluded:

“After this event, those who bought Bitcoins and the insured in more than 4 days achieved an average return of 9.28% above the invested capital. The investor would gain 65.78% of this type of event that occurred 43 times in Bitcoin. REMEMBER: Past results are not a guarantee of future results! “

Read also: Warren Buffett predicts secret investment: Will it be in Bitcoin?

Read also: Trader advises not to invest in Ethereum and XRP

Read also: Analysts reveal how Bitcoin can rise again




Source link