2024 Will Be a Big Year for Cryptocurrencies: Favorite Trading Tips

2024 Will Be a Big Year for Cryptocurrencies: Favorite Trading Tips

Introduction

Hello everyone, this is Cathy Lee with BK Traders, where we trade everything from Forex, gold, indices, and even Bitcoin. Crypto has been dead for the better part of 2 years, but we are seeing a lot of new energy in the cryptocurrency market in 2024. In this video, I’ll be sharing with you two simple crypto trading strategies and some crypto trading tips.

Reasons Why Crypto is on the Move in 2024

The number one reason why crypto is on the move is because billions of dollars poured into nine new US Bitcoin exchange-traded funds (ETFs) in January. These funds from big names like Black Rock, Fidelity, Ark, and Bitwise launched in mid-January and in the first 3 days of trading, they attracted nearly $2 billion. Bitcoin came roaring back to life as a result, and in late October, it hit a 2-year high this January. While there’s been quite a bit of volatility since then, as a trader, it is refreshing to finally see some swings, especially after a year of excruciatingly tight trading ranges.

Trading Tips

Tip 1: Stay on Top of the Correlation Between Bitcoin and Stocks

If you’re a super fan of my channel, you’ll know that there’s nothing more that I love than correlation charts, because understanding correlations gives you an incredible edge in swing trading and day trading. In this daily chart, you can see the strong relationship between Bitcoin and the US30, which is essentially the Dow Jones Industrial Average or the measure of the stock market. This shows you that the performance of Bitcoin and other cryptocurrencies is impacted by how the stock market is doing. Another way to look at this is that crypto is considered a risky asset. Investments or trades with higher risk can tend to perform better when investors are optimistic and the stock market is doing well. With that said, bear markets hurt cryptocurrencies more than bull markets help them.

Tip 2: Watch How the US Dollar is Trading

Bitcoin primarily trades against the US dollar in numerous crypto platforms, so the value and performance of the US dollar have a big influence on the movements of Bitcoin and other cryptocurrencies. If the US dollar crashes because the Federal Reserve starts cutting interest rates aggressively, there’s a very good chance the demand and value for cryptocurrencies like Bitcoin will rise.

Cryptocurrency Trading Strategies

Strategy 1: Bitcoin Swing or Position Trading

Bitcoin loves to test and break the $5,000 and $10,000 marks. The trading opportunity here is a run for the round number. For every $5,000 round number break, take the trade in the direction of the breakout with a target at the next $5,000 mark. Swing highs and swing lows are also important potential target levels for Bitcoin.

Strategy 2: Trading Larger, Highly Volatile Days

Large, highly volatile days of 7% or more have a very good chance of continuation of at least 1,000 points. Have two targets – one for 1,000 points and another for a more loose 2 or 3,000 points. The way you trail is up to you because you’re managing your profits.

Tip 5: Stay on Top of the News

There’s nothing more important to crypto than news. Important events, such as the launch of new Bitcoin ETFs or the housing event that’s going to happen in April 2024, could be catalysts for big moves. Keep your eyes on the headlines because any bad industry news, regulation, or corruption can easily send cryptocurrencies plunging.

Conclusion

If you want the simple 7% code that I created for chat GPTV trading view, just click on the link in the description below. If you learned something from this video, please hit the like button to let me know. I’ll see you all next time.