We are on the verge of a panic sell off. it's a rule, if buyers don't buy, sellers will sell; and this is what happened to BTC in the recent weeks.
Anyone who has been in the crypto market, might have lost money. so do I, from my BTC holdings to STEEM, the blockchain social media I love to engage with. So what is next and what strategy we should take, to stop the loss and gain some weight?
here is mine, explained in this post, but first, let me check the charts to see what will be a possible scenario for BTC.
the big picture
In the big picture, a hype on 2017 is still cooling off. everybody knew 2018 will be a boring year for crypto. forget about what McAfee sells to you! the smart money wants to buy back in the lowest dips, which I can say it's $3000-$4000 channel.
the closer look
check the previous patterns in a sharp drop by BTC, only one month ago. I have spotted 3 circles on the price (with Bollinger Bands), Buy/Sell volumes and RSI14.
If you compare three 1s with three 2s, you may have same conclusion that this oversold RSI won't help BTC so much and the price will continue to sideways or another DROP after a correction. disappointing... I know. but don't panic, since it won't help you at all!
let's stay focused and find a plan.
Strategy no.1 - stop loss
any position you take should be featured with a stop loss. even, with my motto invest as much as you afford to lose, a trader with no stop loss is a dead trader!
So maybe you just can exit some positions and stay aside to see how market moves and get back in a proper time.
Strategy no.2 - swing trades
are you a lover of corrections and fluctuations? ok, here is your chance. change the picture from Daily chart in to H1 and trade daily to grow your asset, though the BTC drops or goes high, you will grow your USD account with successful trades, if you can spot them.
Strategy no.3 - cross crypto trades
this is my favorite! go to www.coinmarketcap.com, find pairs which have potential for a rise against BTC and check the charts. if all the signals were bullish, buy them by selling BTC. obviously if you have spotted right pairs and took right positions, you will have the chance to buy back BTC with some more bonus!
ETHBTC is always an option.
Strategy no.4 - opt in monetizeable tokens
yes I invented this term! monetizeable tokens! tokens which you can increase them by some activity, like STEEM!
last word:
This is a new world, with old financial rules. money management is a must here! you shouldn't blame anyone but yourself for your losses. no one gives you free financial advise! what I and many other do, is sharing thoughts and learn from others.