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What is Bitcoin ‘Pairs Trading’? (Example: ETH/BTC)This is for anybody who wants to sell some Bitcoin but is still bullish crypto. 🚀 It’s also if you’re neutral on crypto but think Bitcoin is overvalued vs other tokens. It’s also just if you’re just interested to see a way to apply a pairs trading strategy . In case you’ve been hiding under a rock, Bitcoin just broke over $100k - No more waiting for the HODLRS!! Naturally after hitting this massive milestone, some traders are going to be thinking about taking profits. And if they’re thinking it, some of them are going to be doing it. But let’s forget about selling for a moment, are you really buying more BTC when it just hit $100k and it's up ~150% this year? So even if there is not more active selling interest, there’s probably less buying interest. I think you’d be mad (or very brave) to bet against Bitcoin. BUT Are these scenarios possible? Bitcoin trades sideways for a while after hitting $100k Alt season kicks in and other cryptos play catchup If you think yes to at least one of these, my team and me have been looking at a pairs trade What is pairs trading? Pairs trading in crypto is a market-neutral trading strategy that involves taking a long position in one cryptocurrency and a short position in another, based on the assumption that their historical price relationship will revert to the mean. The point is to profit from the relative price movement between the two assets, i.e. not the absolute ups or downs of one asset like Bitcoin. ETH/BTC I put this crypto pair this way around - I’m not sure if you’re meant to - it just kind of reminds me of EUR/USD in forex trading. So as a reminder, ETH/BTC is Ethereum’s token Ether priced in Bitcoin. When Ether outperforms Bitcoin it goes up and when Ether underperforms Bitcoin, it goes down. So it doesn’t actually matter if Bitcoin goes up, down or sideways, if you’re trading ETH/BTC - what matters is what one does relative to the other. Well this thing has been going down a lot! Until recently. Going back to the idea of pairs trading - the thesis here is that the Ethererum/Bitcoin price ratio has dropped to bargain levels and could be about to recover. I’m not going to lie to you - there are a lot of sore hands out there from trying to catch this falling knife! But this rebound off the 61.8% Fibonacci retracement of the 2020-21 rally has caught our attention. Dropping to the daily chart, can you see how 0.4000 has acted like a magnet to the price both from above and below? 0.4 is our line in the sand for long positions. Equally, our risk is well defined in this setup. A drop back under the 61.8% Fib level around 0.32 means the idea isn’t working and it's time to get out and let Bitcoin do its thing! How to trade it Specific entries and exits depend on your personal risk tolerance, but broadly there are THREE methods here: 1. Crypto-to-Crypto Spot Trading Trade ETH directly for BTC (or vice versa) on a cryptocurrency exchange. This is straightforward and involves holding the actual assets. 2. CFD Trading (Contracts for Difference) Speculate on ETH/BTC price movements using CFDs without owning the underlying cryptocurrencies. This allows for leverage and the ability to short-sell. 3. Spread Trading Buy ETH and simultaneously short BTC (or vice versa) with equal dollar value to profit from their relative price movement while minimizing exposure to overall market trends. But that’s just how we are seeing things? Do you think this is bananas, or could we be onto something? Please let us know in the comments Cheers! Jasper. Chief Market Analyst, Trading Writers
Education
by jasperlawler
ETH Might Launches Its Rocket Soon 🚀🚀🚀A quick analysis on ETH/USDT using the 4 hour time frame to see what's most probably will happen to the price in the coming hours.------------------------------------------------------------------------------------- Please press “Like” if you appreciate the trading idea 👍 “Follow” for more trading ideas in the future 👀 “Comment” below to share your thoughts with us and other traders 👥 ------------------------------------------------------------------------------------- Risk Disclaimer: All trading ideas published by “collegeofpips” are for educational purposes only. These posts can help you to enhance your trading skills, but please do your own research before opening any trading position. ⚠️
Long
by PriceActionDesk
5
ETHEREUM Breaks Down To Test Previous Levels? $1440 Target Supp!Hi Everyone, As many of you would be aware I'm pretty bullish on Ethereum and Bitcoin for the later half of 2021 but with the recent week of incredible gains comes the inevitable profit taking selloff. Lets take a look at this $1,440 level for instance. This level was previously triple resistance and should now act as support when intersecting with the 20 moving average on the daily. Good Luck this week, Tom PS. If you are interested in finding out more about our courses check them out at www.fxevolution.com
FOREXCOM:ETHUSDShort
by FXEvolution
11
ETHEREUM -Video UpdateHi guys, on this video I explain why Ethereum is the crypto i prefer to invest in and also trade, in this period. Fundamentals being the new version that is coming out and also the CME futures commencing on Feb 8th. The chart is ascending but extremely volatile so maybe use a small leverage if you are not comfortable with a higher one. Hope you like the video and i appreciate your likes and comments. ps. February 8 is much later, keep in touch for more about that
BITSTAMP:ETHUSDLong
by FX_Professor
2
How I'm Playing Bitcoin and Ethereum After a Monster Up DayAfter coiling for days, Bitcoin and Ethereum both made monster moves up (currently both up over 5%). Going into the close (7pm CT) I would expect to see some profit taking with hopes price settles above 8000, which would be a good sign for bulls. WIth that said, the algos have become quite efficient at running stops. On big up days like this, you'll typically see alts follow suit. That overall wasn't the case with most down 4+%. If we see a pullback in Bitcoin, I could see money flow into alts over the next couple of days. Another chart to pay attention to is USDTBTC , which has acted as a great BTC inverse. Please like and follow if you enjoy my analysis :) Thanks!
BITMEX:XBTLong
by TheCryptosaurusRex
The Chart Pattern On Ethereum Everyone Is Looking AtRight now I think everyone sees the same thing: A big ole wedge setting up on ETHUSD...now I hate to burst your bubble, but I don't think it's ready to head higher just yet. As we speak Ethereum, Bitcoin and the rest of the market after a rather quiet day has started to sell into the last hour of the session. We're at a pretty key decision point here in the markets and with multiple Squeezes coiled with Bearish momentum, I wouldn't be surprised if the bull's bubble's are burst yet again.
Short
by TheCryptosaurusRex