Bitcoin price has recently reached a new record high following consecutive days of gains.
BTC reached above $67,000 on October 20 as it continues to climb within the prevailing ascending parallel channel pattern on the daily chart.
This Bitcoin price rally appears to be highly anticipated as the first Bitcoin exchange-traded fund launched on October 19, marking a significant milestone in the cryptocurrency industry. The ProShares Bitcoin Strategy ETF made its debut on the New York Stock Exchange and closed with over $1 billion in trading volume on its first day.
Analysts highlighted that the trading volume of the new Bitcoin ETF was dominated by retail investors, as there were few large block transactions recorded. This suggests that the new cryptocurrency fund by ProShares allowed investors to gain exposure to the new asset class, who may not have had direct access to the leading cryptocurrency prior to the ETF launch.
Bitcoin price appears to be in slightly overbought territory as the Relative Strength Index (RSI) flashed a reading of 80. Investors should be aware that some traders may choose to make some profit on their BTC positions amid the all-time high price, sending the bellwether cryptocurrency to a correction before resuming its climb.
If profit-taking were to dominate the market, Bitcoin price would discover immediate support at the middle boundary of the parallel channel at $63,345, before dropping lower toward the downside trend line of the chart pattern at $59,907, which coincides with the 20-day Simple Moving Average (SMA).
To ensure proper risk management when trading cryptocurrencies like Bitcoin, it is important to always have a stop-loss in place, while also having take-profit orders to ensure gains are locked in before the market falls as it retraces. CoinPanel, an automated crypto trading platform allows you to do both simultaneously, unlike on the exchange. This way, you can be able to ensure that you are managing your risks properly but also get the chance to take profit when the market rallies, superior to the one-or-the-other (OCO) orders on the exchange.
What happened last time after Bitcoin price reached a record high at above $64K
Needless to say, while cryptocurrency markets rally, there is still the risk of a correction, which could wipe out gains and liquidate traders’ positions in a matter of minutes. The last time that Bitcoin price recorded an all-time high at above $64,000 was in April this year. Just a month later, BTC took a nosedive, losing over half of its value.
Corrections are completely normal in most markets, and in cryptocurrency markets, these retracements could be seen as more extreme. CoinPanel’s Full Trade feature allows traders to set stop losses and take profit orders ahead of time to plan out a full trading strategy from the entries to exits all at one go.
Exchanges usually only allow traders to set one exit order using the coin’s balance, which traders would be unable to set both stop losses and take profit orders simultaneously. CoinPanel is the solution for crypto trading with proper risk management without having to sacrifice the automation of taking profits at levels the trader desires.