Popular Crypto Analyst Explains how to Accumulate Bitcoin
Blockroots co-founder and technical analyst Josh Rager believes that the best way to accumulate Bitcoin is to utilize margin trading and trade altcoin – bitcoin pairs when the digital asset is trading sideways.
Now is the Time to Accumulate Bitcoin
Popular crypto-analyst and Blockroots co-founder Josh Rager recently posted a Twitter thread detailing how to accumulate BTC. Rager compares margin trading versus altcoin trading and suggests that “Both of these strategies can be used to accumulate more Bitcoin.”
According to Rager, use of low leverage margin trading is best applied when the crypto-market as a whole is in a downtrend or when BTC is steadily outperforming altcoins. Rager suggested that minimal leverage like 5x to 3x on Kraken can be applied when “Bitcoin pullbacks in a macro uptrend, especially when alts make new lows vs BTC”.
Alternatively, the strategy of “flipping alts” can also be implemented when the leading crypto consolidates and trades sideways for a prolonged period of time.
When Bitcoin Consolidates, Altcoins Find Support
First, one would need to confirm that Bitcoin is trading within a defined range, then watch various altcoins to determine whether they are finding support. Rager then suggests that “buying at confirmed support with a stop-loss below” is a fantastic way to accumulate BTC on altcoin-to-bitcoin pairings.
Savvy investors will note that altcoins have taken an absolute pummelling since BTC began its parabolic rally from $4,000 to $13,800. Furthermore, as Bitcoin topped out at $13,800 and sharply corrected as low as $9,100, altcoins took another beating and many are now at or even below their 2017 lows.
Throughout the ramp-up to $13,800, Bitcoin dominance rose as high as 70% and currently sits at 68.8%. Therefore, investing in altcoins at this point is extremely risky as they could continue to depreciate if BTC rallies or corrects.
HODL is the Safest Path to Riches
Rager appears to acknowledge this and admits that he prefers to utilize minimal leverage “in this current market until altcoins show to outperform Bitcoin.” The analyst also suggests that simply buying and holding Bitcoin could be the most sensible option for traders who are wary of altcoins and not confident enough to trade with margin.
Hodling BTC has proven to be one of the most effective trading strategies as demonstrated by a fairly blunt tweet by Rhythm last week:
Do you think it is wise to use leverage while trading Bitcoin? Share your thoughts in the comments below!
Images from Shutterstock, Twitter: @Rhythmtrader, @Josh_Rager
The post Popular Crypto Analyst Explains how to Accumulate Bitcoin appeared first on Bitcoinist.com.
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