Bitcoin’s reign continues to rule over the cryptocurrency ecosystem with poise and mastery. Having surged almost 50% to its price, Bitcoin is bearing fruits for the cryptocurrency market. While Bitcoin inches towards its once achieved peak for $20,000 per bitcoin, The bitcoin bull market is officially in full speed and the community is more than happy.
With crypto winter long gone, the price of bitcoin is soaring back to its peak with several major resistance lines left in the dust. The trading volume is doing exceptionally well and traders are rightfully preparing for the long awaited bitcoin bull run. So what should be your next move? In this article, we’ll be discussing what should your next move be to get the most out of this bull run? And what are the best strategies?
The simple yet rewarding long position
The most basic strategy you can do right now is hold all of your bitcoins. This strategy is the most sought after and most practiced strategy whenever bitcoin goes through a bull run or is about to enter one. Buying assets at a low price and holding it is exceptional for investors and traders who don’t have the time or energy to monitor each fluctuation in the market. This strategy requires substantially less attention and effort in contrast to other strategies. However; this strategy also brings the least amount of profit in contrast to the other strategies mentioned.
The complicated but rewarding buy and hold
This strategy is often practiced by skilled and experienced traders. It performs similar to the prior strategy; however, there’s a catch that makes it a little more complex. Traders progressively increase the amount of assets they own. This progressive increase is predetermined and established on a well throughout strategy.
For example: Traders buy bitcoins at a price point such as $10,000. Traders decide to buy newer bitcoins at $10,100, and progressively buy newer bitcoins at every $100 increment in price until they reach $11,000. Traders later trade their bitcoins for fiat currencies, profiting off of them highly. Traders continue to repeat the process until they identify clear signs of market reversals.
Using market conditions to your advantage
While buying additional assets and trading them at a higher price may be an exceptional method to gain capital; however, it isn’t the only way to do so. Bitcoin bull runs aren’t linearly constant, they’re a set of miniscule swings and fluctuations in market pricing that go up or down before it continues to progressively grow.
While these downward fluctuations may not be for the weak hearted, they are of great importance to experienced traders. Traders manipulate market corrections to generate consistent profits. Traders often monitor the market for their market corrections to cash in on additional assets. Traders use different sets of market indicators, sophisticated algorithms, and complex statistical models to determine if the market is going to continue its bullish run.
Taking an adventurous swing
The most complex, aggressive, and adventurous trading strategy traders practice is buying and selling at all times. While Traders use the same fundamentals as the prior strategy; buying bitcoins and selling them in correspondence with market movements. However, this technique is a bit more complicated in comparison.
Traders use a set of sophisticated tools, complex algorithms, and raw statistics to analyze the market’s direction. Their strategy utilizes diverse indicators and fundamentals that allows them to dissect the market as they wish to.
In contrast to the latter methods, this method needs a lot of monitoring to create accurate and calculated decisions. Traders need to be aware of every market fluctuations, sometimes traders utilize a set of trading bots and tools to help them with this feat. This strategy is often implemented by experienced traders and investors who have a solid network of connections, analyst sources, and easy access to expert advice.
Bitcoin is seeing a lot of positive light after enduring a lot of negative attention in early October. With the authorities cracking down on BitMEX exchange, holding them responsible for illegal operations, the crypto ecosystem’s press tanked.
However, the chain of events hadn’t produced negative market trends as investors expected. Instead, Bitcoin rallied to $11,500 and shortly pierced through the $12,000 ceiling. Furthermore, metrics illustrate a lot of positive sentiment around Bitcoin as the digital asset continues to garner investors’ attention. Bitcoin has been moving a lot between wallets enabling easy access for Bitcoin to penetrate through the $12,000 resistance.
Additionally, the surge in DeFi adoption has raked in a lot of attention to Bitcoin with over a billion dollars worth of Bitcoins being tokenized on Ethereum’s blockchain. These factors with many more forecasts an eventful end of the year for Bitcoin, and this is just the beginning.