Bitcoin Magazine: Maximizing Bitcoin Gains with ETF Data
Bitcoin prices closed September on a strong note, rallying nearly 10%. Bitcoin prices topped $66,000 for the first time since July, after first dropping to the $50,000 range.
October tends to be a strong month for crypto, especially in the years after a halving. In fact, the entire third quarter tends to see excellent returns for bitcoin. Given bitcoin’s volatility, however, traders may want to use data to find ways to better trade.
The start of new bitcoin ETFs earlier this year provide substantial amounts of data. First, investors can track the overall flow of bitcoin into these ETFs. That creates a simple way to determine whether the big money is buying or selling.
Investors who buy bitcoin when ETF data shows strong inflows are likely to get in ahead of bullish moves higher. Those who sell when big money starts to exit the trade can sidestep a pullback.
Again, this takes advantage of bitcoin’s inherent volatility. Locking in smaller gains from trading can take some of the sting out of buying and holding a volatile asset.
Since late September, investors have heavily started buying bitcoin once again. That suggests, along with bitcoin’s monthly average history, that a further move higher is likely in the next few months.