15.06.2022
The crypto market undergoes a clear negative trend that is expected to last for a while. Bitcoin has plummeted by 33% this week and reached the 18-month low. Bitcoin ceases to exist as “digital gold” for many traders.
Still, the bearish trend in the crypto market is bad news only for those who have long positions for BTC or any coins. What happens in the market now is a unique opportunity to make a fortune. The last time it was possible was two years ago when BTC was steadily growing.
Our analysts have prepared the trading recommendations for BTC and ETH and a short guide on how to trade short. Everything for you to make the most of this market situation!
A short trade, or a sell position, is a type of deal that brings profits from asset depreciation.
Traders sell the assets, which a broker owns, and rely on its future price drop. That way traders hope to buy out the same amount of assets to pay back their broker and keep the profit from a difference in prices.
Trading short also goes under the name of “naked shorting”, for traders sell the assets they don’t own. It is a part that frightens most of the traders who usually trade long. But they should try shorting, too. And here is how to do it.
For instance, it is early November 2021. You check the Bitcoin chart with the timeframe 5Y (i.e. 5 years). You see that it hits the ever-high price, more than 56K USD. But you also read on the news that crypto mining had been banned in China. You came to the conclusion that the price was going to drop because of it.
In mid-November ’21 you opened a sell position at 56000 USD for Bitcoin and closed it 2 months later, already in the mid-January ’22, at a price of 31000 USD. The price of BTC has plummeted and decreased by half. So, shorting brought you 44.64% of gross profit only in 60 days. With leverage, this position would bring up to 10 times more.
You see that shorting works just like trading long. Only the open order is the opposite. Now let’s see how you can apply it to the real-time market.
To guide you in the current trends of the crypto market, our analysts have prepared the trading recommendations for Bitcoin (BTC) and Ethereum (ETH) based on technical analysis.
Now you know how to profit from the bearish crypto market by trading short.
The last chance to make money on crypto was two years ago when BTC was steadily growing.
Trade with Grand Capital and ride the waves even when the market drops!
* Trading recommendations offered by analysts do not constitute a solicitation. Before starting to trade on the financial markets, please make sure that you understand the risks connected with the use of leverage and that you have a sufficient level of training.
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