Live Bitcoin Price Chart - (BTC) Price News, Analysis & History
Key Bitcoin Price Metrics
Bitcoin (BTC) Price History
Investors who bought into Bitcoin when it was starting at $0.008 per coin could have potentially made incredible profits and at the time of writing the coin is trading at $10,730.50. In 2010 someone who had invested 1000 dollars of fiscal currency into Bitcoin would have made by 2017 an estimated $2.5 billion dollars.
Bitcoins' success is partly due to political tension over the years, which has led investors to seek alternative financial avenues. Crypto trading trends are causing many to invest in Bitcoin in the hope of achieving financial success.
It is essential to do your research and make informed decisions so that you can safely partake in the trading of Bitcoin. In August 2020, Bitcoin experienced a sudden price drop in its value that caused a whopping decline of 1.4 thousand dollars in minutes. Some people are now a little wary, as more than a billion dollars’ worth of futures contracts were liquidated, however, this did create a very good buying opportunity for those wishing to enter the Bitcoin market. Despite the volatility in Bitcoins pricing, many still project that it will hit an all-time high when more fiscal capital enters the crypto market.
3 Key Instances for the Evolution of Bitcoin's Price
Government interference in Bitcoin
In September 2017, Bitcoin was dealt a severe blow. Market prices fell by 16.72% when the Chinese government announced that they planned to shut down domestic digital currency exchanges. This created uncertainty that reflected negatively across the entire crypto sphere, leaving many investors worried about the projected longevity of the leading cryptocurrency. This key event demonstrated how government interference in the decentralized system could heavily influence prices.
2020 has recently seen an increase in the amount of institutional interest in Bitcoin. A prominent hedge fund manager named Paul Tudor Jones admitted that one of his hedge funds holds a small percentage of Bitcoin. This news that documented a renowned investor's public support and praise of Bitcoin helped project BTC's price into the $10,000 zone. Therefore, positively affecting the price of the coin on the market.
The halving event
Bitcoin was experiencing market price lows in March of 2020. The halving event of May 2020 rectified this. The conjecture encircling this event led to an astounding rise in the trading value of Bitcoin. The hypothesizing of analysts on this highly anticipated occurrence helped to stabilise Bitcoin's value in the short term. Bitcoin isn't under the governance of a central authority like fiat currencies are due to its decentralised nature. Therefore, the halving of the reward given to miners is necessary to curb inflation.
Key News for Bitcoin's Price
Recent events surrounding the decline of the US dollar have led many experts to weigh how these events may affect Bitcoin's future. The upcoming US presidential election has analysts believing that Bitcoin and other cryptocurrencies will be affected similarly to other commodities trading. However, some note that Bitcoin will benefit in the same way that gold does when there is economic uncertainty. Therefore, many are continuing to buy Bitcoin as recent projections attest to this currency prospering during this time.
The US dollars' failure to outperform the euro and its unlikelihood to do so over the next few years could be positive for Bitcoin. This is partly due to the coronavirus pandemic, which has placed the US dollar under extreme strain. The economic impact of the pandemic can be seen in the continued shrinking of the US interest rates and a greater need for quantitative easing.
Many people are now turning towards cryptocurrencies which have demonstrated resistance and even growth throughout this difficult time. These factors are unlikely to be resolved in the short term, a fact which will continue to increase the attraction of Bitcoin.
Bitcoin Price Technical Analysis: How to Identify Good Entry/Exit Points When Trading
When trading Bitcoin, it is essential to ensure that you have an excellent enter and exit strategy. By employing the use of various technical analysis tools, Bitcoin users can generate informative trading signals. These tools will help you determine price trends, how the market behaves and provides you with a sound understanding from which you can deduce smart trading ideas. You can make use of many technical charting tools such as bar and candlestick graphs. Another method is to conduct technical indicator formulas such as moving averages, and the relative strength index, to name but a few. Drawing tools such as pitchfork, Fibonacci circles and spirals, and XABCD patterns have also proven to be very useful, and information on these can be easily found online.
Have a Clear Goal
A grand entry will maximize your choice of a profitable trade, while with your exit, you will have to consider your profits and your losses. When going into a trade, make sure you have a clear target in what you want to get out of it. These targets should help you when closing a transaction in profit and determine when a trade has gone wrong. Remember, you will have to be patient; having no open trades does not mean that you are missing out. It would be best if you observed the asset you want to procure until you can identify a clear trend that will signal a strong entry point.
Make Use of Analysis Tools
Massive volume changes on the market can tell you a lot about a potential trade. It would be beneficial to use volume indicator tools to discern whether a Bitcoin transaction suggests large sums of money are either entering or exiting a market position. You could then use these findings as an entry point. Employing laddering can help you manage some of the inherent risks that come with trading. It is better to enter a position gradually so that you might mitigate the effects of market volatility.
Fundamental and Sentiment Analysis
Start with a small series of trades after a couple of hours; this way, your average entry price will be safer than if you had entered the market all in one move. Perhaps most importantly, conduct fundamental analysis on the potential trades that you would like to undertake. You can do this by conducting in-depth research on potential Bitcoin trades to ascertain whether the transaction will be beneficial or not.
Additionally, traders can partake in sentiment analysis to study different sources such as mainstream media, and market research surveys. Remember to always practice critical thinking when finding the best entry and exits, and you will surely develop over time, better market timing skills.
A significant factor that will determine the price of BTC is supply and demand. Due to Bitcoin being generated at a predictable rate, the need for Bitcoin must continuously increase for the price to remain stable. In the case where demand becomes stagnant, the price of Bitcoin would rapidly fall. Bitcoin is volatile by nature; however, as more people begin using Bitcoin, the price volatility will stabilize.
Very unlikely. There is not a single currency that isn't at risk of becoming worthless. Bitcoin is now firmly established as a world-wide payments system and viable trading asset. Many experts believe that while other cryptocurrencies come and go, Bitcoin is here to stay.
Yes, to a degree, you can use various market analysis tools and methods to predict a range of price variables for Bitcoin. That said, even the most experienced financial traders don’t always get it right. Never invest more than you can afford to lose.
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