As seen above, the following levels around the $ 58,000, $ 51,000, and $ 42,000 price zones were considered ‘buy the dip’ opportunities by many market participants and analysts. However, had traders bought at the said ‘buy the dip’ zones, they would’ve seen considerable losses since BTC’s price made lower lows on a larger time frame.
So, what is a decent strategy during a bear market?
Fight BTC and ETH Movements with Age-old Trade Tactics
It is often said that even fools can make money in a bull run; a trader’s true skills are tested during a bear market. While that isn’t a universal truth, the fact that making money during bear cycles could be slow, painful, and exhausting holds true.
First things first, assessing the larger trend in the market is crucial before entering a trade. Notably, as of June-2022, we are still in the middle of the current bearish trend; However, bitcoin’s price has found major support near the $ 30,000 mark.
At the $ 30,000 mark, psychological support could act as crucial long-term support for the top crypto asset. Looking at the several big institutional investors that bought BTC around the $ 30,000 price level price can be expected to hold the fort within this range.
On the other hand, the recent dip saw many new investors abandon the ship and sell in losses. Notably, the recent downtrend in bitcoin and ether prices was fueled by short-term investors liquidating their positions.
Market fear, panic, inexperience, and doubt (FUD) play a huge role in molding short-term holders’ sentiments that affect the market. A good understanding of the market and a general understanding of fundamental and technical price analysis can help traders position accordingly and act quickly to minimize losses.
Some Tested Strategies
While there isn’t a sure-shot way to make profits in the market, a general understanding of trends can better help traders navigate a bear market. Trade strategies like support to resistance trading have proven beneficial for many traders.
In a bear market, prices fluctuate in a tight range between a key support and resistance level. For instance, from May 10 to June 8, BTC prices have maintained in the $ 31,500 and $ 28,620 range.