Welcome back,
Bitcoin fell as low as $65,000 USD, and it created panic not among a few traders, but almost everyone in the market. If you look at the fear and greed index, it dropped to 9, which clearly shows extreme fear. Even I was scared during that phase, but I still decided not to sell my assets.
You have to understand one thing very clearly. If you did not sell your assets earlier when Bitcoin was around $125,000 USD, or even when it was close to $110,000 USD, then there is no logic in selling your holdings when Bitcoin falls to $66,000 or $65,000 USD. This phase is purely driven by fear.
That is why it is very important to monitor the fear and greed index and follow technical analysis, especially for Bitcoin and the total crypto market capitalization. These two things alone are enough to help you decide when it actually makes sense to exit the market.
I still do not believe that we are going to create a new all time high in the crypto market anytime soon.
However, because the market is now more mature and behaving differently compared to previous cycles, I do think that later this year we might come very close to the previous all time high. That is the phase where I will personally start selling my assets.
I am planning to do a detailed technical analysis and share it with all of you very soon, so stay tuned for that.
For now, one very important thing to remember is to stay away from futures trading. Just yesterday, a huge amount of money was liquidated in short positions because people assumed that Bitcoin would fall further.
But that did not happen. Instead, Bitcoin pumped by more than 10% in a single day.
When the market is highly volatile and heavily manipulated, futures trading becomes extremely dangerous. So it is better to stay away from it.
Thank you and happy trading everyone.