The BitOffer Research: Does the Bitcoin keeps bull market in the year 2021 when the Bitcoin pushed down to the MA60?

3 min readApr 20, 2021

On April 18th, the Bitcoin pushed down to 15%, driving other cryptocurrencies to fall collectively. The latest Bitcoin pushed down to the $50,000, which is the first bull and bear boundary to break below the MA60. The amount of liquidation in a single day is as high as $7 billion, being higher than the amount on March 12th, 2020, refreshing the maximum single-day liquidation amount. However, the market had stronger buying power that there was a relatively obvious lower shadow line of bottoming and rebounding in a single day.

A few of the investors started to concern whether the bull market for Bitcoin and other cryptocurrencies still in place? For the slumping state, Lucian, the BitOffer Chief Analyst, said it was just the performance of deleveraging and the market would not have any sign of the shorts, which resulted from the large cash out of shareholders for Coinbase. That is not the case.

The Coinbase landed on Nasdaq by directly appearing on the market instead of the traditional IPO pattern. Appearing on the market means the team owns sufficient funds and is unwilling to sell the stocks to the investors. Coinbase chose to list directly because of its reputation for compliance. If shareholders want to cash out large sums, they will not choose direct listing, but choose public roadshow IPO fund-raising and listing, to achieve the effect of large sum cash out.

The Bitcoin has plummeted sharply. From the above feature, the Bitcoin firstly pushed down to the bear and bull boundary Bitcoin since this round of bull market. The largest declining rate was 15% and other mainstream currencies declined more than 20%. How terrible the market.

It’s too early to say that the bull market is over. The BTC uptrend pulled back after the bottoming up. It didn’t push down below the MA60. It is more of a kind of market washing behavior. Investors need not panic too much. After a short period of pulling up, the market is expected to regain its upward trend and create historical glory again!

On April 18th, the liquidation amount hit a high record of 7 billion because the number of cryptocurrency market investors has increased in recent year. Some coins declined more than 30% like BSV, DASH, ZEC, FIL, etc. The investors choose 3 times leveraged to do the longs. A forced liquidation is triggered, which is often referred to as a liquidation, which shows how risky the contract is. That is to the liquidation, which shows how risky the contract is.

However, clients who invest Leveraged ETF in BitOffer do not need to concern about the liquidation. Although the Leveraged ETF has the same 3 times leverage, the underlying principles are different. When the currency price drops by 30%, the contract has triggered the liquidation mechanism, while Leveraged ETF has no liquidation mechanism. Even if the currency price drops by 30%, the liquidation will not be triggered. Investors can pay attention to HODL and wait for the price of the currency to rise. Return of net worth to achieve profit, which is where ETF funds have advantages over contracts.

The Leveraged ETF is a position adjustment mechanism to make compound interest. Regardless of whether investors buy up or down, the profit-generating side will automatically re-purchase profits, thus producing the effect of continuous compound interest. The income of ETF funds will be 3–17 times, and the loss will be less than 3 times. Compared with the spot currency and contract, the advantage is very obvious.

From Leveraged ETF data last week, we found that the DOGE increased by 6 times. The DOGE3X, Leveraged ETF of DOGE, increased to 134 times in the mechanism of compound interest. Therefore, the profits income surpasses more than the spot currency and the contract. Buy the Leveraged ETF rather than the spot currency, to gain 3–17 times higher profits.