Bitcoin is the first cryptocurrency to have existed and receive wide acceptance and the first to see lots of short selling activity. Bitcoin can be accessed by everyone on the internet and enjoys the support of both developers and users communities.

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The price of Bitcoin has made a very big jump in the small-time period and it is important to say that several situations were behind this rise. Many large companies such as Microsoft accept Bitcoin since 2018 as a legitimate source of funds. Bitcoin was accepted as a legal payment method in Japan and several other countries showed the interest to accept this cryptocurrency as a legal payment method. Every day, more businesses accept Bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects.

Cryptocurrencies, as a whole, now hold above two hundred billion in market capitalization, while Bitcoin (BTC) leads the pack in terms of market cap. The current live price of most public cryptocurrencies has surged in a relatively short time period and some market observers have expressed concerns that the asset class may have entered a speculative bubble. Others, such as the author of the book “Rich Dad, Poor Dad”, rather see the US dollar as the risky asset right now:

Q: Why do I say buy, gold, silver&Bitcoin? A: Because I do not trust the Fed, Treasury, or Wall Street. Game of $ rigged in their favor. Gold, silver, Bitcoin are outside their control. As Fed prints trillions in Fake $ Gold, Silver& Bitcoin become harder, stronger, more real.

— therealkiyosaki (@theRealKiyosaki) May 27, 2020

Some analysts pointed to not only to the price gains, but also the fact that so many cryptocurrencies – including those that haven't seen technical or business progress – have risen in value. Technically looking, the Bitcoin is the main driver of the cryptocurrency market and when the price of Bitcoin drops that have a negative influence on all other cryptocurrencies.

Bitcoin presents a variety of opportunities that did not exist prior to its development but the price of Bitcoin is extremely volatile. Crypto-markets are dominated by individual investors currently but the real growth driver will be institutional investments. It is very hard to measure the real fundamental value of this cryptocurrency and to predict where the price of Bitcoin will go in the long-term but according to some analysts, Bitcoin could reach a new all-time high in the coming years. The political atmosphere is going to have a major impact on the cryptocurrency market in the long-term.

How to short Bitcoin? Which are the best Bitcoin trading platforms?

Shorting a Bitcoin is basically betting against the Bitcoin will rise in value. When you short Bitcoins, it means that you are expecting the price to go down instead of up. So you can make money when the price goes in the opposite direction and for those with great skill is a way to make some good money. One of the easiest ways to short Bitcoin is through a cryptocurrency margin trading platform. Many cryptocurrency exchanges allow this type of trading, with margin trades allowing for investors to “borrow” money from a broker in order to make a trade. It's important to remember that there may be a leverage factor, which could either increase your profits or your losses. It’s not a good idea to hold a short position for long periods of time or to leave an open short position with no stop-loss order. Many Bitcoin exchanges allow margin trading at this stage, with BitMex, AvaTrade, and Plus500 as some popular options. It is very hard to say which platform is the best because this depends on the experience and habits of each investor/trader. Good trading platform dedicates a huge amount of attention to the professional preparation of beginner traders, while at the same time providing for the highest level needs of the most sophisticated players in the market. Collaboration with clients should be completely transparent, and customer support should always be available and ready to help, like when you trade with Skilling.

Factors that make a good platform

• Easy to use
• Absolutely transparent and fair practices, technology to protect all data and secure methods for funds depositing/withdrawing
• Good customers support available 24 hours
• Advanced analytical and technical tools
• Guaranteed stop-loss orders
• Free demo account
• Real-time charts
• Low spreads
• News and market analysis

 
Another way to short Bitcoin is to sell this cryptocurrency at a price you feel comfortable at, wait until the price drops, and buy Bitcoin again. Becoming profitable “by shorting a Bitcoin” requires a strategic plan with short and long-term goals, when you will trade, the amount of capital, trading time frames… A good trading plan must be researched, tested on historical data, and tested in a live market. Technical and fundamental analysis are the most important tools when it comes to analyzing the price of Bitcoin and other cryptocurrencies. Investors and the long-term traders are generally more focused on the fundamental analysis while short-term traders usually trade according to technical analysis in order to profit from short-term price moves instead of waiting to profit from long-term price movements. In my opinion, every trader or investor who wants to become profitable should use a combination of technical and fundamental analysis to make decisions. Fundamental analysis helps you to figure out the real market value while technical analysis helps you to find a better entry or exit position by predicting the price movement of Bitcoin.

Difference between cryptocurrency exchanges and cryptocurrency brokers

There is a difference between cryptocurrency exchanges (Poloniex,Coinbase, Bitfinex) and cryptocurrency brokers. The major difference between brokers and exchanges is that with brokers you are actually trading a CFD(Contract For Difference), most of the time. On the cryptocurrency exchanges, traders and investors can really buy a Bitcoin. One of the advantages of trading Bitcoin through brokers is that the security of your funds is very high. Most crypto investors/traders still trade with exchanges directly, and we can ask the question “do we need a broker”?. Most exchanges were not built for the beginners, their customer support is not always available, crypto exchanges have also fallen victim to cyber attacks. All of these facts support the trading with reliable brokers. When choosing a broker, always check history and reviews to make sure their performance is consistent. Checking the short selling broker reviews is something you should always do. It is very hard to say which broker is the best but according to analysts, Plus500, AvaTrade, and EToro scored best in their review of the top brokers for trading Bitcoin. The cost of trading and the broker’s trust score were the two most important categories. Some other advantages with these brokers include :

• 24/7 customer service
• A range of platform inc. Web Trader, Tablet & Mobile apps
• Offers demo account
• Many years in business
• Low spreads
• Used by thousands of traders

Technical analysis of Bitcoin right now

The price of Bitcoin currently stands around $9 800 and at this value, the total market cap of Bitcoin is around $180 billion. It is important to mention that Bitcoin has the highest volume on the cryptocurrency market and the Bitcoin trading volume indicates how many Bitcoins are being bought and sold on specific exchanges.

On this chart (the period from January 2019), I marked major support and resistance levels that can help traders to understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When the price passes through the resistance, that resistance could potentially become support. Bitcoin remains in the „neutral- bearish phase“ but if the price advances above $10 000 it could be a good sign of the trend reversal and the next resistance could be located around $10 500. The current support level is $9 000 and if the price breaks this level it would be a “SELL” signal and we have the open way to $ 8 500 and $ 8 000. If the price drops below $8 000 which represents very strong support, the next target could be located around $7 000. Bitcoin is still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk. Several cryptocurrencies have lots of advantages over the Bitcoin – they require a minimum transaction cost to avoid overloading the network, the capacity and transaction speed are also better. While Bitcoin relies on user adoption, some cryptocurrencies are aiming for more widespread adoption in daily commerce. This makes them more attractive to investors that view cryptocurrencies like Bitcoin as vulnerable to future regulatory battles and therefore not likely to be adopted for general commerce.