What happened with Bitcoin? Is the bear market over?

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As we all have noticed by now, Bitcoin just had a break out from $4,1k to $4,8k in a matter of an hour. The crypto twitter is going crazy, everyone is asking for an explanation and almost everyone is super-bullish! At the moment, Bitcoin is +14% which is a view many of us haven’t seen for quite a while. Let’s look into this, what might’ve caused this, what to expect and what to do from this point on. 

Broke crucial resistance point at $4,200

As we reported earlier Bitcoin had only two possible scenarios left from that point on. Whether we plunge deeper in the bear market or have a bullish breakout of the $4,2k resistance point. As we can see, the second scenario has fulfilled. Some say that Bitcoin now will be testing $5,5k – $6k in the future. If we break that resistance we’re up for a bull market. If not, we’re plunging deeper into the bear. Possibilities of Bitcoin temporary testing new highs before diving back below $4k also are in the air. 

$500 million liquidated on BitMEX

As many call Bitcoin “very volatile” and some try to counter that accusation, today Bitcoin sure was volatile enough to liquidate $500 million on BitMEX alone. BitMEX is one of the most popular leveraging platforms for Bitcoin and many traders were shorting Bitcoin right and left in this bear market period. However, today’s price increase resulted in massive liquidation and BitMEX now sees almost $3 billion in volume which is 3x higher than yesterday. The price of Bitcoin even touched $5,129 at one point on BitMEX.


Fake News in the cover of April Fools

Another interesting assumption is that because of the many articles that were coming out on April Fools, trading bots algorithms started picking that up and started buying. For example, one of the news was a fake article about the SEC finally approving Bitcoin ETF. The other one was about Warren Buffet finally investing in Bitcoin. Of course, many say that such news cannot move the price of Bitcoin. Partly, I believe that statement, but when it comes to trading bots and algorithms, you can never know.

What to do now, and where is it heading?

Now is the time to find your own belief into what has happened. One thing is for sure, new money has come into crypto. Another thing is that we should see a small correction in Bitcoin’s price. The asset already has stabilized at $4,7k. If we see a correction, that could indicate a small alt-season, because people would want to take profits out of this Bitcoin rally, and that means putting them into alts. Some say that we could be testing out a new surge if $4,2 becomes the resistance.

Of course, the community is going nuts and everyone is super-bullish. People FOMO’ing left and right trying to squeeze that lemon as hard as they can. However, the feeling in the past weeks has been ever so optimistic and almost everyone is bullish. And as we know – it might as well be the opposite – once everyone is bullish on one thing – happens the other which no one anticipated. 

How to Short Bitcoin? A Beginners Guide

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In this article, we will overlook how to short Bitcoin. Most beginner traders think that you can only profit from cryptocurrency price increasing. The basic belief is that if Coin A goes up in price – you profit, but if coin goes down – you lose money. However, this is a very common misconception between underdeveloped financial instrument traders such as altcoin pairs in small exchanges or just inexperienced traders. This brief guide will teach you what is shorting and how you can short Bitcoin.

What is shorting?

The definition of shorting is borrowing any asset or security and selling it with a belief to later sell it for a lower price and after giving back the security keeping the sell-buy price difference. In the essence one is shorting if he believes that the price is going to go down, however, shorting can be used as a tool for hedging. Usually for borrowing assets from a broker for shorting you need to pay some interest, however, some brokers offer a shorting interest free marking it up in trading fees.

Example of shorting

John is grocery shopping at his local market and sees that bag of apples costs 100 USD. John thinks that the price is far from the real value of the bag. He goes to his friend`s house and borrows a bag of apples. Then he goes back to the market and sells his bag. A week later, he comes back to the market and sees that apples now cost 80 USD per bag. He buys a bag for 80 USD brings it back to his friend’s house. The total outcome of this is that John has earned 20 USD due to the fact that he sold the bag for 100 USD and bought it back for 80 which leaves him with 20 USD difference.

You can short Bitcoin on following exchanges

How to short Bitcoin on BitMEX

Lets image that you want to short Bitcoin. The steps that you need to take are as following:

  • Log in or create your own BitMEX account
  • Select your order type: Limit order will let you set exact buying/selling price, market order will execute trade at current market price, Stop market will place a stop-loss at market price when price reaches your target,  Stop limit will do a limit order with stop-loss, Trailing stop will execute order with set price limit from a floating point, take profit-limit will set an opposite order of your current position at your chosen price and amount, Take profit-market will place an opposite order of your current position at certain point and amount within market price.
  • Place your order and you are good to go! Remember to always adjust your margin.

Disclaimer: Always trade with cautions. This guide is for educational purposes only and is not financial advice. Any content displayed is not encouragement for any specific financial decisions e.g. shorting Bitcoin.

BitMex sets up a Lightning Network (LN) node

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BitMex research team set up a LN node along with a very detailed article about Lightning Network in general. In a twitter post BitMex reveals their Public key and invites users to open a channel to their node. Explaining that: “Deposits & withdrawals are still a long way off, but at least this is a start.”

BitMEX blog about Lightning Network

Reddit Acknowledges

The article published in their blog has been evaluated with only positive responses in a reddit thread. Users write that: “Bitmex is the real deal. No KYC, dumped Bcash and credited customers with BTC for it, has an actual cold wallet, called out Ethereum and does good ass research in the space. Much props to Arthur Hayes and his crew”, says a user imbalanewoo.

I would most definitely suggest you to read the article, because it explains the core essence of LN, and the structure how is it working. Pros and Cons, use cases, tutorials how to set up your own channel and many more interesting information about LN development. You can read the article here.

What do you think? Have you opened your LN channel already?



BitMex Co-Founder becomes the youngest bitcoin billionaire in the U.K

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Ben Delo, the co-founder of BitMex cryptocurrency exchange, has become Britain’s youngest self-made billionaire at the age of 34. He founded BitMex in 2014. He told that he used to work 18 hours a day for some time, and that he didn’t waste any time for his idea. 

“I have had my nose down in a start-up for the past four years. I was doing 18-hour days at one point” he said.

His work has apparently paid off since BitMex is currently one of the top exchanges in the crypto market with around $2 billion in daily volume.