I’m sure your friends and family aren’t the only ones trying to sway your opinion of cryptocurrency.
When it comes to finance, the media can’t seem to find much else to talk about either and it’s hard to argue otherwise.
This year has been a wild ride for Bitcoin and the digital currencies that follow in its footsteps, with highs as much as $16,042 and lows that refuse to stray from the $6,000 mark.
While crypto’s volatility seems to consist of nothing more than random ups and downs in the market, it’s been happening long enough that a recognizable pattern is now starting to emerge.
I’ll tell you why this $6,000 value is important and how you can use this “magic” number to your advantage.
If you’ve been staying on top of the free content that WSI TV has to offer, then you should be somewhat familiar with the term support.
No worries if you’re new to the site or simply need a quick refresh on the subject, support is a common stock-talk expression that can be EASILY explained.
The best way to understand support is to think of it as an imaginary line that helps stock shares bounce back up when they fall down.
And that’s exactly what Bitcoin’s “magic” number is shaping up to be!
If you were to draw a straight line that repeatedly touched this $6,000 mark, you would be eye-to-eye with the support I’m referring to.
Here, it may help to look at the chart depicted below.
As you can see from the red boxes and dotted line, there is a clear line of support.
As the name suggests, this line has continually supported Bitcoin throughout 2018, shoving its shares back up shortly after entering the $6,000 range.
Sure, this is interesting and all, but you may be wondering how it applies to you personally?
If history repeats itself, which it has a tendency to do, then this most recent Bitcoin dip is soon to be followed by a price surge.
As I write this, Bitcoin has just dropped into the $6,000’s and is now beginning to change its trajectory to an upward climb, which creates a PERFECT opportunity for you to make some cash from crypto!
The trick is to buy in during one of these lows and ride the bounce all the way to the top.
Afterwards, you can get out of the trade at a higher price and pocket the earnings, before the shares begin to begin to shift back down. It’s that simple.
Who knows? Bitcoin could skyrocket from $6,337 to the $19,783 it sat at less than a year ago, leaving you with more than a 200% gain!
Either way, it’s important not to let your excitement interfere with your trading.
Remember to always proceed with caution when investing, especially when it comes to volatile crypto trades, and feel free to apply your newly acquired knowledge of support to your future activity in the market.
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