Monday, November 14, 2016

Trading Bitcoin for a change

I was going over my usual charts last weekend when I noticed that I had never ever traded Bitcoin before in my life. Once I clicked on the infamous digital currency in my trading station I immediately got a warning from my broker: 'Warning, Bitcoin value is extremely volatile!' etc. I remember seeing this a few years back as well, likely one of the reasons why I never traded Bitcoin. But it's also why it's fascinating to me, especially now that it looks like this extremely volatile trading instrument is on the rise. It has managed to keep it's value over the past few months, and in some places now paying with Bitoin is more widely accepted. Time to take a closer look.

Bitcoin, at this time of writing trading around 700. What caught my interest yesterday is the slow increase in value over the last few months, toward the end of spring this year it got a huge boost, and it never really lost a significant amount of value ever since. Let's take a look at the chart below;

I know the time frame is pretty short in a gerenal sense, but this is why it makes it so attractive as being a 'sound' investment. Before the beginning of summer it hovered around 440 - 480 levels, then it was lift off to where were are now: 700. I'm seriously considering entering a buy, with a stop loss around 685 - too tight? Maybe, but I'm still cautious. I do think we are seeing an uptrend since the beginning of October. Bitcoin is certainly in the news a lot lately and perhaps is seriously now on it's way to become a world currency. More interest usually means more demand, and 700 may sound overpriced or expensive right now, but the way the trend is heading we might see Bitcoin trading over 1,000 next year. A perfect time to step in a buy this digital currency. It had enough time to show us it can maintain its value for a whole season, but still not to a point that is too late to make a good profit.

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