Tips for traders, 12 January 2021

With the recent breakout of bitcoin, creating more and more highs, there has been astronomical growth that has not been seen for any financial instrument in the modern era. This has made BTC become the go-to instrument when millennials or even gen-Z start investing.

The Fed has decided to print more and more money, plus the incoming US president Joe Biden emphasized that $600 compensation won’t be enough and plans to raise the bill to $2000. These factors have made more and more people and institutions put their money into crypto, particularly Bitcoin.

Yesterday (11/1), Bitcoin dropped significantly from $38,000 to $30,500. This hit many long positions on futures. This growth since December has made many people jump into crypto recklessly, but not as much so as in 2017.

Since the price has bounced from its strong support, there is a potential further downturn if $38,500 holds. However, if this area is breached with strong volume, another new high could be in view.

OPEN A DEMO ACCOUNT

Disclaimer: the publication of tips for traders is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience or current financial situation. Tips for traders are not prepared in accordance with legal requirements promoting independent investment research and Exness is not subject to any prohibition on dealing before the release of tips for traders. Readers should consider the possibility that they might incur losses. Exness is not liable for any losses incurred due to the use of tips for traders.