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Will This Strategy Help Crypto Traders Make Profits Despite The Burdening Supercycle?

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Dec 14, 2021

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Article Highlights
  • Whales continue to seize the opportunity, buying the sell-offs by amateurs.

  • Veteran from 2017 educates on the strategy to evolve as an ace trader during catastrophes in the coin market.

The crypto market is currently being volatile to greater extents, as the coins from the market have been rolling down the plots. Wherefore, Amateurs from the industry are in distress. As their expectations of a ballistic year-end seem to have been washed away by the waves of the cycle. Folks from the industry were optimistic about BTC price claiming the $100,000 price tag. 

Following the bullish stance during the month, that took the price of BTC to a new ATH. The targets of BTC claiming the $100,000 milestone now look far from sight. Whales continue to seize the opportunity, buying the sell-offs by amateurs. Meanwhile, a veteran from 2017 edifies on the strategy to evolve as an ace trader during market catastrophes.

The Dump Before The Pump?

A discussion on Reddit suggests that a shakeout is happening before Christmas. While masses in the industry were taking positions expecting pumps, the market witnessed a dump. Big money players have been buying the dips from sell-offs by smaller players. As a result, the reserves on exchanges have been dropping. 

The bullish expectations of retail traders have not turned as wished for, as a result, smaller traders have been panic selling. Meanwhile, deep-pocketed traders continue to HODL and buy more sell-offs. Another user suggests scaling down leverages, if not then hold. As the whales have been doing the same for higher returns. 

A Guide For The Traders?

A prominent crypto analyst from the crypto street cites that the market trends have been resembling that from June/July. As digital assets from the directory of the crypto market have been chopping around, slowly consolidating towards bottoming structure. The analyst believes the market will not hit bottoms.

In a discussion on Reddit, a veteran from 2017 edifies on the dos and don’ts during the dips. The veteran counsels the traders not to panic and impulse sell the entire holdings. The repercussions if the market rebounds in the short term could take a toll on the mental well-being of the traders.

The go-to plan must be that one must be consistent with adding assets to the portfolio. This is called “Dollar Cost Averaging” (DCA) that helps keep trades above one’s emotions. Investors need to keep adding smaller portions to the portfolio at specific intervals while being consistent. The strategy acts as a hedge against market swings.

Collectively, the skittish market always gives opportunities to get in during crashes. Getting in during crashes helps yield optimum returns on investments. The aforementioned strategy has been beneficial for numerous traders in the crypto industry. Hopefully, Bitcoin alongside other digital assets will retrace the price trajectories to greater highs in the near future. 

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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