If Bitcoin doesn't break above USD 51,100 as soon as possible, it could lead to a steep decline

In the last few days, Bitcoin has risen around USD 20,000 in the latest bullish round. Do you also see a consolidated bull market coming?

Undoubtedly, many people share the opinion.

On August 23, Bitcoin broke the key level at 50,000, reaching the highest price in recent months.

Paypal recently revealed that its UK customers will soon be able to buy Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

The company’s long-awaited move into cryptocurrencies was believed to be one of the main catalysts for Bitcoin’s massive growth in Q4 2020, so its influence cannot be ignored. However, many bearish factors emerged at the same time.

Headwinds

Against the backdrop of rising COVID-19 cases around the world and less than satisfactory economic data, investors are worried that the Fed is likely to remove stimulus and start shifting its exposure to the US dollar.

In addition, last Thursday, Japanese cryptocurrency exchange Liquid reported that a cyber-attack has resulted in a loss of more than USD 97 million in digital coins. Just 10 days ago, hackers stole more than USD 600 million worth of digital coins from Poly Network. These events have many traders, especially beginners, worried about the security of the exchanges and may cause them to stop trading for a while, which could affect the liquidity of the exchanges and lead to massive sell-offs.

The MACD at the end of July showed a deviation from the price movements, which is a sign that the bullish momentum is weak, or even turn bearish.

Gráfica de precios de bitcoin y de volumen negociado. Gráfica de precios de bitcoin y de volumen negociado.

In addition, Fib 0.618 indicated that USD 51.100 will be the key position. It is noteworthy that the indicator has accurately predicted the price twice from USD 28,800 to USD 50,000. Will the indicator predict the price correctly again?

Gráfica de precio de bitcoin con las líneas de Fabinachi. Gráfica de precio de bitcoin con las líneas de Fabinachi.

If the key resistance level manages to defeat the continued rally, will it be able to predict the price?How to make big profits in the downtrend? It is advisable to resort to the 100x leverage provided by exchanges such as Bexplus.

How 100x leverage works

With 100x leverage applied, you can use 1 BTC to open a 100 BTC position by going long (predicting that the price of BTC will go up) or short (predicting that the price of BTC will go down).

For example, in spot trading, if you buy 1 Bitcoin at the price of $50,000 and then it goes down to $49,900, you will make only $100 profit. On Bexplus, if you invest in 1 BTC at the same price with 100x leverage and the Bitcoin price drops to $49,900, you stand to make a profit of $10,000 ((50,000-49,900)*100 = $10,000).

About Bexplus

Bexplus is a crypto futures trading platform that offers 100x leverage for trading pairs like BTC, ETH, LTC, Dogecoin, XRP, etc. Headquartered in Hong Kong, it now has branches in Singapore, Japan, USA and Brazil. Bexplus requires no KYC and is accredited by MSB (Money Services Business), and is trusted by more than 800,000 traders from over 200 countries/regions.

Bexplus features

  • Privacy: registration requires an email confirmation and no need to verify your identity.
  • Demo account: 10 BTC are provided in the simulator account for traders to practice their trading skills.
  • Deposit bonus: get a 100% bonus every time you make a deposit.
  • BTC Wallet: up to 21% risk-free annualized interest rate
  • APP support: intuitive and full-featured application on Apple App Store and Google Play.
  • Flexibility: Benefit from the ups and downs of the market.

Join Bexplus to maximize profits.

Pancarta promocional del bono del 100% de Bexplus Pancarta promocional del bono del 100% de Bexplus

Bexplus offers price prediction <a href=”https://www.bexplus.com/blog/ethereum-classic-ethereum-price-prediction-in-2021-2025-2030/” target=”_blank” rel=”noopener”>Ethereum Classic, Litecoin 2025 price prediction and XRP price prediction to help users keep up with the cryptocurrency industry.

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