One of the financial assets that is showing the most lively in the markets around the holidays is bitcoin. After the strength shown throughout the year, it seems that things are going wrong again in this cryptocurrency. The month of September has not done anything good to its price since its price has fallen in the first half of the month more than 30%. One of the biggest differences that can be found in any financial market. Although in this case we are talking about a somewhat special one that many small and medium investors are pending. In many cases to open positions from this moment. But is he in the best of situations to position himself?
This significant depreciation of bitcoin since it reached its all-time highs at $ 4950 it is really very attractive for all operators. Professionals who give a more than forceful explanation to understand these sudden movements in the financial markets. It resides in China, after one of its markets has said that it will stop trading bitcoins at the end of the month. This newsworthy event has led many investors to move away from their positions.
Although the really important thing is if this movement is temporary or if on the contrary it will continue for a long time. Because depending on this important variable, they may or may not declines sharpen in the coming months. Such is the importance of this drop in the price of bitcoin, that if you have invested 100.000 euros in this financial asset, you will have lost about 30.000 euros when you return from vacation. In any case, losses that are very difficult to assume and that can make more than one investor nervous at the moment.
Bitcoin: reasons for this decline
The BTC China online marketplace will stop accepting new registrations immediately after considering the government's recommendations. This news alone has plummeted the value of this virtual currency. But what is worse, the trend may be in force, or even sharpen from now on. It is a matter of grave concern to the many supporters of this investment proposal. In addition, the Chinese authorities had already been warning for several weeks about the need to control this cryptocurrency before a multitude of criminal transactions. A fact that can cause new and serious depreciations.
But not only the Asian authorities have echoed these concerns. Some banks and investment groups have also participated in these market sentiments. To the point that some of them come to consider bitcoin a fraud and one of the biggest bubbles in recent years. In this sense, caution should be one of the denominators in all your operations. Because in effect, you can lose much more money than initially imagined. It is not surprising that you wonder if it is really worth taking positions in this very special coin.
Selling pressure at the last minute
In any case, not all the opinions of financial intermediaries are negative regarding the need to invest the savings in this very original proposal. In any case, they warn that prudence must be the common denominator of investors. Because they cannot forget that it is certainly a risky option due to its complexity. Despite all of them, these same sources suggest that it can be an interesting investment as long as the amount allocated is not excessive. But on the contrary does not represent more than 10% of the equity. It will be more than enough to take positions and try to make the most of the savings in the shortest possible time. Because in effect, its operations are directed to the short term, never to longer terms.
However, international brokers also point out that bitcoin presents a series of unknowns that have not yet been cleared. And that suppose an additional burden to your financial performances. Because you cannot forget that there are no products that are linked to these very special financial assets. Neither investment funds, nor warrants, not even listed ones. It is a gap that at this time is still unresolved if your intention is to open the way to this kind of operations.
Cryptocurrency resistance
Despite being such an unconventional investment, there is no doubt that it is also governed by the same analysis criteria as in the other investment proposals. Where some of your reference points are represented by the resistors and supports. So that in this way they give you the path that you must follow from that moment on. Either open positions or on the contrary undo them so as not to see yourself immersed in a bearish channel of great intensity. With which you could undoubtedly lose a lot of money. Perhaps more than you can imagine from the beginning.
Well, in this sense, nothing better than going to these parameters for technical analysis. Where one of the most important keys will be that don't leave the $ 5.000 levels. Especially after the strong selling pressure that this monda is going through at this very moment. Not surprisingly, one of the signs of weakness that has presented in recent days has been that it has violated the important barrier that bitcoin had at 3.500 dollars. To the point that it would not be strange it could go down to 3.000 and even exacerbate its declines in financial markets.
Multi-year potential
Due to the special characteristics of this new alternative for investment, it may have an upward journey with a very long time frame. Even some financial analysts point out that it can reach in this period that of U.S. dollar 10.000. But talking about this kind of investment is saying a lot. And most importantly, that it cannot satisfy this desire of the experts in this area of the economy. From these perspectives, the wisest thing you can do is refrain from any kind of operations. Unless the et graphics give a very clear input signal.
Because, on the other hand, you cannot forget that it is not as traditional an investment as the ones you were used to operating with them. Not much less, but on the contrary it is governed by codes that are more difficult to understand And apply. To the point that it will require a greater knowledge of the product. With questions such as what this currency consists of and what role it currently represents in the investment world. In this sense, it will not be easy for you if you want to open positions from now on. You will have no other solution than to be more and more informed about what bitcoin is. Something very complex for a good part of the small and medium investors.
Advantages of these operations
To see the positive side of this investment, you will have to go to the benefits that these operations can generate at some point in your life. As an alternative to contracting investment funds, derivatives or even buying and selling shares in the equity markets. Because you will find some other benefit. Do you want to know what some of them are? Well, pay a little attention from now on because it can be very useful in some phase of your investment stage.
- Like it or not, this is a world currency and that is something that favors you when investing your savings. As long as you take on the risks that you incur when starting operations in these markets that are not yet too well known.
- Is very fast transactions that you can run in a few hours. As a consequence of these characteristics, it is a viable option for traders. Because open movements can be profitable in a very short space of time. Where if luck is with you, you will be in the best of conditions to generate high revenues for the operation.
- Due to its advanced encryption system it is a impossible to counterfeit currency. In this way, some of the doubts that this investment raises are eliminated. Originated from the belief that movements made in this currency can be supplanted.
- To conduct business it is possible to carry out anonymous operations as well as transactions. That is, you can protect yourself under the anonymity of these movements. Unlike what happens in other more conventional investments.
- The lower amount of its operations is another of the incentives to take positions in this financial asset. Not in vain, you cannot forget that it is a coin with lower transaction costs than other types of transfers, credit cards, etc.
- The great volatility that the bitcoin price presents is a plus so you can make operations profitable. With higher profit margins than in the stock market or in the same investment funds. That is, you will have to dedicate less financial effort to opt for this investment model that has appeared in recent years.