Bull Market High Altcoin Operation Strategy: Pursuit, Hedging, and Replenishment
Prerequisites: After a period of operation in a bull market, Bitcoin shows significant divergence at high levels and gets stuck in stagnation, while altcoins have accumulated a certain increase. At this time, altcoin operations should be based on Bitcoin's trend.
1. Pursuit Strategy
When Bitcoin is in sideways consolidation, or climbing from a low to a resistance level, if altcoins are already showing profit effects, even if they are at high levels, there is still room for upward movement. After all, the characteristic of a bull market is that the lows gradually rise, and the highs continue to refresh.
2. Hedging Strategy
Once Bitcoin approaches a resistance level for testing, one must be wary of a failed breakout leading to a significant drop. At this point, it is necessary to decisively cut losses on altcoins, even those that have not yet risen should not be kept; otherwise, when Bitcoin falls, altcoins may drop by as much as 30%.
3. Segment Operation Strategy
The market can be grasped in phases. When Bitcoin approaches a resistance level, cut losses on altcoins, and convert part of the altcoin positions to Bitcoin or go to cash and wait. The bull market presents a spiral upward trend and will not be achieved in one step. Even if some altcoins' independent trends are missed, there are still other altcoins to choose from.
4. Altcoin Replenishment Strategy
1. If Bitcoin fails to break through the resistance level and falls to the vicinity of the support level to stabilize and gain support, one can replenish altcoin positions again, seeking a rebound from oversold conditions; usually, the more it falls, the larger the rebound.
2. When Bitcoin successfully breaks through the resistance level, then increase the altcoin positions, as the upward space for altcoins after breaking through the resistance level is often larger.