Since November 1, within a one-month span, the bitcoin price demonstrated a staggering 42.8 percent increase, from $6,000 to $10,500. Analysts expected a major price correction to occur in the cryptocurrency market, given that the value of other leading cryptocurrencies such as Ethereum and Bitcoin Cash has increased substantially along with bitcoin.
Historically, the price of bitcoin tends to follow a trend in which it achieves a new all-time high, suffers a major correction, but rebounds to its previous all-time high and prepare for new rallies. The same trend has been demonstrated by the bitcoin price development over the past few days, given that bitcoin’s value surpassed $11,000, dropped to $8,800, and recovered to $10,500.
How to trade bitcoins?
Bitcoin trading the process by which we speculate on future price moves of this coin.
It’s not difficult to to trade bitcoins. As with all other financial markets prices have rationalities of their own – controlled by good technical analysis – and the moves in the currencies themselves follow well understood “fundamentals” (total coin supply, technical details, development plans, mission statements, general speculation). To keep track of these moves websites and Twitter are essential tools.
Bitcoin Vs. Gold
Bitcoin currently amounts for less than 3 percent of the global gold market. But, the value of gold has been on a decline over the five years, and the definition of a safe haven asset clearly depicts those safe haven assets either increase in value or remains stable. Hence, considering bitcoin’s transportability, fixed monetary supply, and decentralized structure, bitcoin is a better safe haven asset than gold.
As more institutional investors enter the bitcoin market, investors from the gold market will likely migrate to the cryptocurrency market alongside hedge funds, investment banks, and retail traders.
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