Bitcoin’s (BTC) price again experienced a sharp rise in volatility after breaking a three-year high on November 24, 2020. The price instability of BTC/USD parity caused BTC to rise to $19,300 during the day and then to fall to $18,900. But what do leading analysts think of BTC, which is traded at $18,990 at press time?
The Byzantine General, already known for his successful analyzes, drew attention to the $19,500 level hours before this fall. Looking at Binance results, it can be seen that the decline began at $19,484 and increased its magnitude to $19,200.
What exactly are investors expected to do against such abrupt drops?
Since these declines start based on BTC and impact altcoins, the essential thing investors need to do is to position a stop order. Especially in the bull market and during volatility peaks, quick dips or rises can be seen. This makes a must stop order in such a situation.
Looking at the bull run in 2017, it can be seen that the price has gone through much stricter declines than it is now.
BTC, which was quoted at $19,000 on December 17, 2017, had a nearly 30% reversal, dropping to $13,830 just six days later. BTC, which later grew very close to its former high, may also have caused severe losses to investors who did not have a stop order at this point.
Another measure that investors may take is to complete benefit transactions that have not yet been completed. Famous analyst Crypto Michael also drew attention to this issue, stressing that profit that has not been taken is not equal to profit.
P.S : This is not an investment advice