I don't know why most people enjoy the heavy rise of bitcoin while it is only good for long term holders. How long do they want to hold? Forever? They have to sell at some point and exit the market. For day traders like me, expensive bitcoin is not attractive at all because it not only reduces my profit, it also increases my stress.
I have to buy at $40.000 and sell at $40.200 to gain daily profit (This is an example). This is much less profitable than when I used to buy at $8000 and sell at $8200 the same day. Apart from this, whenever I buy at $40.000, I am worried about a big crash right around the corner because the prices are too high now.
How do you cope with this situation as a day trader? Do you dare to buy $40K bitcoin for short term trading?
Whether its 8k or 40k, should not make any difference to traders. You need to increase or decrease your position size. If are stressed trade small. You have that flexibility as it is divided into Satoshis.
In fact its more volatile, more swings up and down, giving more opportunities to trade and profit.
It does make a difference and a big one!
Suppose investing $100, buy at $8000 and sell at $8200. Profit = $2.5 (regardless of fees)
Suppose investing $100, buy at $40000 and sell at $40200. Profit = $0.5! (regardless of fees)
So, to earn the same $2.5, you have to sell at $41.000! In fact, you need 5x more price movement to achieve the same result. Bitcoin doesn't fluctuate $1000 every day.