Trading Bitcoin (BTC) is not easy, given the relatively high volatility of the cryptocurrency, its low correlation to other asset classes, and its reaction to various factors that can come from both the crypto industry and traditional finance.
Like the U.S. dollar and other fiat currencies, which are mostly driven by macroeconomic factors, cryptocurrencies like Bitcoin can become volatile when the Federal Reserve surprises with its interest rate decision. However, Bitcoin can also react to the collapse of a major crypto exchange like FTX. Therefore, it’s difficult to predict where the next big trigger may come from, which is why Bitcoin traders should pay closer attention to market analysis on all fronts.
Where is Bitcoin today and what to expect?
In 2023, Bitcoin experienced a period of recovery, with the price starting the year near $16,500 and peaking in mid-April above $31,000 to reach its highest level since the beginning of June 2022.
Source: TradingView
The recent banking crisis has helped Bitcoin, with mid-sized banks like Silvergate, Signature and Silicon Valley Bank failing within days of each other in March this year. Expectations that the Fed will continue to raise rates at a slow pace have provided additional bullish support.
The largest cryptocurrency by market capitalization has seen some correction in May amid regulatory uncertainty and ongoing concerns that the U.S. debt ceiling negotiations could fail and lead to a default.
Still, crypto believers expect systemic risks to push Bitcoin to new highs this year. For example, U.S. venture capitalist Balaji Srinivasan even bet $1 million that BTC would exceed $1 million by June this year. He said that hyperinflation would hit the U.S. dollar, causing the USD value of a Bitcoin to skyrocket.
While the $1 million outlook may seem far-fetched, the upcoming halving event can lay the foundation for another record price this year or next.
In order to evaluate trading opportunities and understand Bitcoin’s next moves, active traders should spend more time on market analysis. By scanning the market regularly, traders can gain valuable insights and make informed decisions.
Market analysis can help traders find the best entry and exit points to make the most of Bitcoin’s price fluctuations. Integrating a trading bot into the trading process can enhance the benefits of market analysis by bringing automation and implementing risk management tools. In addition, most trading bots focus on technical analysis to determine the best entry and exit points based on support and resistance levels, indicators and volume data, among others.
This trading bot helps users automate trading and benefit from BTC fluctuations
Conducting in-depth analysis and leveraging automation offered by trading bots can lead to lucrative opportunities in the Bitcoin market. TradeSanta is a relevant example of a trading bot with many features to help novice and experienced traders deal with Bitcoin price fluctuations.
With TradeSanta, users can create customized trading bots within 5 minutes. Once ready, these bots can work in both spot and futures markets. The application monitors the market day and night to find better opportunities. It has a built-in trading terminal to manage all portfolios from one place.
The trading bot helps many traders take advantage of the cryptocurrency market without spending much time. Many have full-time jobs but still want to get exposure to Bitcoin and other digital currencies, and this is where TradeSanta comes in handy.
Since making an informed decision requires time and effort to analyze the markets, busy users can copy trade from TradeSanta’s community traders or use top-performing bots to implement better trading strategies. Users can browse and use successfully tested strategies and choose the ones they like by exchange, strategy, template, market, or trading pairs.
Source: TradeSanta
TradeSanta also allows users to benefit from top-performing bots by using copy trading services to implement better trading strategies.
Traders who don’t want to rely on third parties can use TradeSanta to trade on their own and automate many processes. For example, they can improve risk management by leveraging the stop-loss feature that sets a limit on how much traders are willing to lose in a position. Cryptocurrencies are highly volatile, and implementing reliable risk management measures is imperative. Using the stop-loss feature can help traders minimize their losses.
Many traders exit too early or wait too long to close a position, resulting in missed profits or losses. TradeSanta's trading bot helps users to set their individual strategies and risk profile, and also to exit their positions at the right time. Moreover, traders can optimize their trading strategies by using fundamental analysis and TradeSanta's tools to open long and short positions.
In addition, users can discuss trading strategies 24/7, get the latest market updates and recommendations from experienced traders and the community, and be quickly notified about all TradeSanta’s changes and improvements.
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