Don’t Be Fooled! Crypto Isn’t Dead, and The Bull Run Isn’t Over Yet.
Learn how to buy crypto 30% cheaper than others during pullbacks.
Hello everyone! During a bull market, people often expect Bitcoin and other cryptocurrencies to continually set new highs. However, they ignore the fact that dips and pullbacks are an inherent part of the market.
They get worried when red candles appear on their chart, and start selling their assets in panic. But you don’t have to be like that.
You should know that pullbacks present opportunities to gain better entries, rather than a moment to sell your crypto assets in a panic.
To take advantage of this current phase in the market, you will need to rely on data to make informed decisions.
You must also understand that sometimes, Bitcoin may offer a 20–30% discount, and the only way to take advantage of these pullbacks is to have cash readily available.
This is why you should constantly take some profits off your trading portfolio when the market becomes extremely bullish. This ensures you have dry powder (cash) available to buy pullbacks. But…
Is Crypto Dead Now, or Has Bitcoin Topped Out?
I have come across some posts on Crypto Twitter suggesting that Bitcoin has reached its peak at $73K. However, from a technical standpoint, the market is still on a strong upward trend with no bearish structure on the higher timeframe.
Moreover, the recent approval of the Bitcoin Spot ETF has generated significant interest among new investors in Bitcoin and other digital assets. Hence, I believe the cryptocurrency market has more room for growth in this bull run.
So, to take advantage of this information, you need some basic knowledge of technical analysis to identify market reversals and read the warning signs on your chart before they occur. See the chart below.
As of now, the 20-day EMA is acting as a support for Bitcoin, and Bitcoin has not yet retested the 100 and 200 EMAs on the daily timeframe. Therefore, there is no need to panic about Bitcoin or rush to sell your altcoins.
However, the fear and greed index is almost above 90, indicating that investors are extremely greedy in the market, and that calls for caution. No wonder we recently had a pullback toward the 20-day EMA; the pullback may continue further.
So, when the market becomes extremely bullish and people get greedy, smart investors use such moments to sell some assets and take profits so they can buy those assets cheaper when pullbacks occur.
But sometimes, the price could keep going higher to trap more investors. This is why you need to read the warning signs and be ready to maximize opportunities.
But Can I Still Buy Bitcoin Cheaper?
Well, if you’re new to the market, it’s unfortunate that you came a bit late. The boat has sailed, and Bitcoin has left the accumulation zone below $20,000.
At this point, you can only “Buy High and Sell Higher.” Dollar-cost averaging and the opportunity to buy low and sell high may no longer exist.
However, you can use technical analysis data to position yourself in the market. To do this, you should learn how to use the exponential moving averages (EMAs) effectively. Read this article below.
Next, let’s answer one more question…
People Often Ask When is the Best Time to Buy Crypto?
Many beginners in the cryptocurrency market believe that the best time to invest in crypto is whenever they have the resources to do so.
They don’t consider certain factors that may affect the cryptocurrency market, such as market sentiments, technical analysis, news, and events.
This approach may work if you are dollar-cost averaging on Bitcoin to build a long-term portfolio, regardless of its price.
However, if you want to become a profitable trader or short-term investor, you must understand that the cryptocurrency market doesn’t exist in isolation.
The cryptocurrency market is influenced by various economic factors, such as:
- Feds tightening
- Unemployment
- The US stock market
- Money printing
- Inflation, and others.
This is why you should familiarize yourself with fundamental analysis to make an informed decision when investing in cryptocurrency assets.
To Take Advantage of Pullbacks, Follow These Steps:
To take advantage of pullbacks, here are the steps to follow:
- Add the 20-day, 100-day, and 200 EMA-day Exponential Moving Averages (EMA) to your chart.
- Monitor your chart on higher timeframes such as 4-hour, 12-hour, and daily.
- Buy or reinvest when Bitcoin retraces towards the 200-EMA on the 4-hour or 20-day EMA.
- Pay attention whenever Bitcoin approaches the 100-day and 200 EMA-day EMAs on the daily as they may act as the last support lines for Bitcoin.
- Set stop-loss targets to protect your funds in case Bitcoin breaks down and reverses to a bearish market.
- Only buy at support and sell when you see bearish signs such as double tops, triple tops, head & shoulders, and break below key support levels on the EMA.
- Buy when there is blood on the street (red candles) and sell when there is excitement in the market (green candles).
- Always take profits on your trading and short-term portfolio whenever the market is bullish.
- Never forget rule number #8.
Final Thoughts
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Finally, if you want to master how to identify trade patterns such as Head and shoulders, Double Tops and Bottom, Bearish and Bullish Candlestick, and How to Use Simple Indicators to improve your trading skills, download this Trader’s Manual Handbook below.
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Thanks for reading.
Invest wisely.
