So here's another update on $BTC and how to trade in the coming weeks.
We witnessed $BTC pumping from the 51k zone to the 57k zone in less than a day. Such pumps are always expected during a bull phase and aren't unusual. If you ever thought you could perfectly time entry and exit before these pumps, you're mistaken.
Although I'm generally very bullish and don't plan to short at all, we can't ignore the need for a healthy correction. During a bull run, healthy corrections aren't limited to 5-10%; moves of 15-30% are quite normal too. Historical data suggests that we're nearing the halving (in the next 50 days), and before every halving cycle, we've historically seen significant dips to liquidate most leverage traders and panic sellers. The question is, will this time be different? With ETFs and the current scenario, maybe or maybe not. However, we need to focus on protecting our capital.
Personally, I'm a day trader with a substantial spot stack that I won't touch and keep adding to. However, my major income also comes from daily trading on leverage. Securing this capital is crucial as the market will soon attempt to reclaim all profits.
I'll be reducing my capital size per trade to 20-30% of my current trade size. For example, if I typically trade with an average size of $20-30k per trade, I'll now trade with capital sizes of $4,000-7,000 only. This way, even if we witness brutal crashes, with stop-loss in place, we won't lose much during the crash while others give almost everything back to the market. I'll follow this strategy for the next two months and adjust if necessary, but I won't be taking shorts.
Additionally, I'll use most of my leverage profit to heavily buy alts during this dip.
Whether this time will be different with ETFs or not, we should be prepared for whatever may come, whether a Black Swan event, war, or anything else.
