How To Use Quantitative Strategies When Bitcoin Bottom

Bitcoin bottom is when bitcoin dips to a certain level due to various factors. One of the key levels used to determine Bitcoin’s bottom is the dominance level. When the dominance reduces to below 50%, then you can call it a bitcoin bottom. Alternatively, a bitcoin bottom can be when it dips to a certain resistance level. For example, when Tesla announced that it would stop accepting Bitcoin, the price dipped from $64,000 to around $30,000. In this scenario, $30,000 was the bottom of the key support level. Buy Bitcoin

How to judge the bottom

There are three main ways to judge the bottom. 

Resistance level

You can judge Bitcoin bottom by studying at a resistance level. This is the point that Bitcoin touches and hardly dips below it. For example, if Bitcoin averages $41,000 to $45,000, the resistance level will be $40,000. If it falls below the $40,000 mark, we can say that Bitcoin has hit bottom.

Bitcoin dominance

Bitcoin’s market dominance is the most sought-after statistic by investors. This is the percentage of Bitcoin market Capitalization compared to other coins combined. When the dominance rises above 50%, then it means that Bitcoin has a high market cap compared to all coins. 

Fed fears

Regulations can cause a bear market in bitcoin. For example, policies that are put in place by the Government. The federal market Committee is organizing a conference to discuss inflation. It seems like the Government is keen to set up policies that may affect the cryptocurrencies market. Government policies can make the market to the bottom or shoot up.  

What is quantitative trading?

Quantitative trading is the execution of orders based on computational analysis. Most popular analyses include price action, history, trading volume, etc. This type of trading leverages computer resources and speed to humans. A software can execute orders faster than humans when certain factors are triggered. Popular exchanges have made quantitative trading easy by the introduction of trading bots. You can customize one to follow all your triggers before executing a trade since algorithmic trading executes trades based on scientific computations, Government to be more profitable. Large institutions such as banks use quantitative trading when executing large orders.  

Gate.io quantitative trading

If you are looking for the best quantitative trading platform, then gate.io might be your best choice. It comes with several strategy templates to make work easier. Besides, you can also create a new strategy from scratch using the strategy platform. The best thing about Gate.io is that it features copy trading. You can easily identify the most profitable strategies and copy them with a click of a button. Use Gate.io quantitative trading

How to seize the bitcoin bottom using quantitative trading

Quantitative trading can help you thrive at the bitcoin bottom. It utilizes computational techniques to execute highly successful trades. You can copy already successful strategies if you don’t know how to create your strategies. With quantitative trading, you can make profits even at the bitcoin bottom. However, you need to be aware of the risks. This technique is highly effective but can also make losses at times. It’s highly advisable to trade with caution.

Benefits of quantitative trading  

  • Removes emotions from trading
  • Makes data-driven decisions
  • Blends multiple strategies 
  • High success rate compared to other techniques

Via: https://coinfunda.com

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