BTCUSD is the currency pair representing Bitcoin against USD, as a cryptocurrency is frequently used as a reference point.
Most currency traders are familiar with the major currency pairs, but Bitcoin presents its own set of challenges and opportunities that deserve investigation. It’s certainly an intriguing market worth exploring!
Technical Analysis
Currency traders are familiar with many major and minor currency pairs. But one currency pair that stands out is BTCUSD because one component isn’t fiat – instead, it contains one of the world’s most beloved cryptocurrencies: Bitcoin.
Technical analysis is founded on the idea that markets follow consistent patterns. To accurately forecast future market movements and meet trading opportunities at optimal times. Technical analysis offers traders a way to spot these repeating fluctuations and to buy or sell at the right moment.
Technical analysts use multiple indicators when making their decisions, including price, volume and chart patterns. Chart patterns are easily identifiable formations on a price chart which indicate when and in which direction a trend may continue or reverse – typically these patterns can be identified through analysis of Bitcoin price charts giving traders an edge when trading BTCUSD.
Fundamental Analysis
Traders use fundamental analysis to assess the intrinsic value of assets such as Bitcoin BTCUSD. They compare its current market price with its fair value; which in this instance can be determined using discounted cash flows.
As cryptocurrency assets do not generate cash flows, their fair value calculation is more complicated. To accurately gauge it, traders must factor in non-quantifiable factors like news events that could influence the market.
US Federal Chair Janet Yellen’s comments regarding possible regulatory changes for cryptocurrencies could have an effect on the Bitcoin BTCUSD pair, potentially curtailing their use in financial markets and pushing its price lower. Therefore, traders need to remain up-to-date with all relevant information which may alter this cryptocurrency’s value, such as tracking adoption rates and network hash rates to predict changes in demand.
Position Trading
Most currency traders are well versed in the major and minor pairs, including BTCUSD which represents Bitcoin against the US Dollar. As this pair represents two of the primary assets traded globally today.
Bitcoin has seen remarkable success as the dominant cryptocurrency. It has quickly become accepted as both a payment method and digital store of value, making this pair an important market to monitor as a means to future-proof your trading career.
As is true with other markets, Forex requires you to develop your own unique trading style and strategy based on fundamental and technical information available. Furthermore, you should develop a trading plan in order to help make consistent and objective decisions; our guide on building your trading plan may provide helpful assistance here.
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AvaTrade’s website features numerous resources designed to assist traders in finding lucrative trading opportunities, including daily market analysis performed by its team of analysts, analytical videos and educational materials. AvaTrade also provides a secure environment with 256-bit SSL encryption, True Site identity assurance and McAfee security; bonus incentives may include up to $400 from referral programs while it accepts multiple payment methods with wire transfers potentially taking longer depending on which bank is chosen for payment.
