The Crypto Market Is Currently A Trader’s Paradise
A Recent Decision
About a month ago I made the decision to sell some altcoin holdings in order to fund some trading accounts. I was looking to trade these values higher and eventually buy back my original holdings at a discount. This seems to be playing out quite well in my favor as alts have been really suffering of late. This decision was fortunately prior to the Terra debacle. How long this bear market goes on is not my main concern. I am more interested in how long it takes to establish a bottom. At least from the bottom, there is no real additional loss, only possible stagnation as a worst-case scenario. However, as we trade lower towards that point there are amazing trading opportunities.
The “Bitcoin Box” Range
While Bitcoin’s price action continued to bounce between the bottom and the top of the “Bitcoin Box” I began to see the shift towards a market well suited to trading. This has now become even more of a trader’s market, as we are seeing very predictable price action at the moment, moving in a very specific range. This has simultaneously caused me to become rather cautious. Anytime you begin to see too much predictability in the market you best be ready for a violent move. The move out of the “Bitcoin Box” range was also quite sudden and rather extreme. Bearing in mind that once it broke downwards the “Terra Crash” helped to accelerate it.
Enjoying The Current Price Action
I have enjoyed a number of good trades over the past few weeks and am brainstorming new ways to bulk up my trading accounts without sacrificing my portfolio and its future value. Yes, prices are down but they won’t stay down forever. I am forecasting a couple of months, perhaps even as much as another six months. This is in terms of a bottom and not necessarily a reversal or fresh bull market. Despite valuations dropping, trading opportunities are rife. Taking advantage of the abundance of trading opportunities is almost as important as buying a bear market bottom, provided you are a fairly successful trader. We all know that the majority of “traders” lose money consistently rather than actually profiting from their endeavors.
Removing Distractions & Maintaining Daily Habits
Each morning I pull up the charts in search of tradable pattern formations. I monitor and watch the development throughout the day to try and execute as many intra-day or daily trades as possible. What needs to be remembered is that you must not get too familiar with a range in a bear market. What tends to happen is that the price action hammers about in a range and then suddenly drops to create a new lower range. This scenario tends to play out until a bottom is formed. If you are disciplined and attentive, great trading opportunities are available in this market.