Cryptocurrencies are hot in binary trading. They became a global phenomenon often discussed in various forums on Bitcoin, Ethereum, or Litecoin. Crypto niche attracts the attention of investors, traders and ordinary people from around the world due to price turbulence and high returns.
The purpose of crypto assets such as Bitcoin is to create decentralized electronic money and to replace the usual monetary circulation, removing the layer of intermediaries and regulatory authorities.
Currently, Bitcoin and other coins became a popular investment tools. A crypto trader can earn thousands of dollars in a short period of time. A binary trader is no exception. That is why most traders love cryptocurrency because there is hype, excitement and unpredictability. However, there is a chance to relatively accurately predict market behavior. In the morning a coin can cost $100 and in the evening $500. Crypto assets are often sold and bought bulk. An experienced trader can predict a fall or increase in price after correction.
Think about crypto currency as a monetary unit. The market can be overbought or oversold. There can be fluctuations, rises, falls and correction. Remember, that crypto valuation is very sensitive to social response. For example, after the news about the death of the founder of the cryptocurrency, the rate may collapse by thousands of percent in a few hours. It happened after a fake about the founder of Ethereum. The price recovered only after the denial of the news.
The media environment and the behavior of the asset holders form the price of a crypto asset. Otherwise, the virtual currency behaves in exactly the same way as Coca-Cola stocks, the ruble or the dollar. Take a look at the screenshot. It shows a natural correction within the trend while maintaining the direction of the market – a familiar situation for any asset.
Making macro-trend forecasts can effectively trade Bitcoin on electronic contracts. Over the entire period of its existence, the currency showed similar trends: after each price drop by more than 10%, a global growth occurred for several days / weeks / months. This formula can be used in electronic contracts with a long expiration period. If you see that the course has sagged strongly, make a forecast for an increase with a period of 24 hours.
Every price drop is followed by an increase and correction.
To make sure that quotes do not show a drop after fixing your trade, wait for the uptrend to begin (forming a uprising shoulder in the screenshot). Even if you saw a simple correction, with a high probability it is a signal to change the bullish movement to a bearish one (or vice versa), so your bet will pass and you will make a profit.
Accuracy in forecasts in cryptocurrency trading
RSI and Stochastic are the most effective indicators when trading Bitcoin in binary trading. You can trade not only on global trends, but also use short periods of expiration: 15 seconds, 60 seconds, 5 minutes or more. The first indicator will inform you about overbought or oversold leverage, and the second indicator will confirm the direction of the subsequent trend, increasing the accuracy of your forecasts.
RSI and Stochastic are the most effective indicators when trading Bitcoin in binary trading.