Elon Musk failed to drag Bitcoin from the Red Sea
Elon Musk failed to drag Bitcoin from the Red Sea
Bitcoin

Elon Musk failed to drag Bitcoin from the Red Sea

By Crypto Advertising - 29 Apr 2022

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SPONSORED POST*

On April.25, Bitcoin (BTC) jumped as much as about 5.5% after the announcement that Twitter will be purchased by Tesla’s CEO, Elon Musk. Since 2021, Musk has become something of a cryptocurrency market mover with his tweets about Dogecoin and Bitcoin. However, in the macroscopic context, Musk’s influence waned and short-lived. Bitcoin as well as the whole crypto market is still at risk of decline. 

BTC price plunges as Fed becomes more and more hawkish

Federal Reserve Chairman Jerome Powell discusses the possibility of raising interest rates by 50 basis points at the Fed’s meeting in May. Given this policy, the factors that fueled cryptocurrencies’ stellar gains in the past couple of years are turning into huge bearish ones to the crypto market. The next FOMC will be held on May 3 to May 4, and BTC will face further decline if Fed moves quickly to tame inflation by increasing 50bps. 

Escalating EU-Russia confrontation slams global economic outlook

On April 27, Russia cut off natural gas supplies to Poland and Bulgaria, which objected to paying for gas purchases in rubles, dramatically escalating its response to Western sanctions imposed on Moscow over the war in Ukraine. Since the outbreak of the Russia-Ukraine conflict, beyond the suffering and humanitarian crisis, the entire global economy has risks of slower growth and faster inflation. 

And now as Russia hits back at escalating Western sanctions, we can foresee that a long fight gears up between Russia and Western, having greater impact on the global economy. Investors will shy away from risky assets like Bitcoin. 

Technical Analysis

On the weekly chart, BTC is trading below the middle line of the Bollinger Band and the Bollinger Band is slightly moving downward. But the BTC price is now getting support from the  trend line which formed in 2021. However, MACD and RSI are showing bearish bias, which indicates BTC may be still at a downside risk. If BTC declines below $38,000, the next target will be $35,000.

BTC weekly chart
BTC weekly chart

How to hedge loss in BTC decline & get bigger gains

From the analysis above, we can reasonably speculate that a large downside correction is ahead.  Smart traders will hedge loss in spot trade by trading BTC perpetual contracts with 100x leverage. BTC perpetual contract is a popular instrument that allows traders to profit on the market fluctuations. 

If you want to open a 100 BTC short position when BTC prices at $39,000, you only use 1 BTC as margin. When BTC declines to $35,000, you will earn ($39,000 – $35,000)*100BTC / $35,000 = 11.4 BTC. With only 1 BTC invested, you will have a chance to make an ROI up to 1100%.

Bexplus – Leading BTC Futures Exchanges

Bexplus is one of the world-leading futures exchanges with no spread in cryptocurrency. It provides perpetual contracts on BTC, ETH, ADA, DOGE and XRP with 100x leverage. Accredited by the U.S. FinCEN MSB, Bexplus is trusted by over one million traders around the world, including the USA, Japan, Korea, and Iran. 

Join Bexplus, you can enjoy

  • 100x leverage is offered to maximize trading profits.
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  • Interest-bearing Bitcoin wallet with an annualized interest rate of up to 21%.
  • Demo account with 10 BTC to practice trading without risks.
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  • 7/24 hours 1V1 customer support available.
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10 BTC FREE bonus giveaways

To deposit BTC in the Bexplus account, you can earn a 100% BTC bonus, which can also be used to trade futures contracts. The more deposits, the more bonus you will get. You can get up to 10 BTC as a bonus!

Enjoy high win rate with Top Traders

Bexplus offers users a useful tool “Copy Trading” which can help traders make profits in BTC futures trading easily. When using this excellent system, you can automatically copy other traders’ orders, who have high profitability, and you still retain full control over managing your portfolio.You can stop the copy, pause it, and add or remove funds at any time.

Click Here to Join Bexplus in your 30s with No KYC now, and start the journey to great fortune. 

*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.

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