The world’s leading cryptocurrencies are still both knocking at strong resistance levels. Bitcoin fails to attack the $60,000 mark, while Ethereum dropped below $2,000 again this week, only to recover back above the critical level on Friday.
The side drift continues, but this does not make cryptocurrency markets any less attractive for margin traders. The volatility stays high, and the longer the prices remain stable, the bigger the following price action should be.
It may go either way at any time. Whether you believe bitcoin and ethereum will go up or down, it’s a good idea to hedge your dominant position with leveraged side orders. This way, you can wait longer to resolve the situation and have a more significant margin of error for your primary strategy.
Some trading platforms’ data suggests that some overly bullish traders, who didn’t hedge, can be knocked out of their leveraged positions. Such a scenario would mean BTCUSD could drop below the $55,000 support. Bitcoin is already down 8% from the all-time highs in February. Some traders who entered crypto at the highest levels may become anxious.
Unless this causes a panic sell-off, the macroeconomic and fundamental indicators seem to be favorable for BTC in a long time.
Whichever scenario prevails, this is the time to trade bitcoin and ethereum. Investors will make huge profits by going long or shorting cryptocurrencies over the following days (or weeks).