Why The Market Downturn?
Some OG crypto traders were taken by surprise when the crypto market experienced a major downturn between Sunday, August 5 and Monday, August 6, 2024. This bearish movement saw the price of #Bitcoin drop below $51,000 before rallying back up.
That kind of drop was unexpected at the start of what most crypto analysts have called the biggest and longest bullrun ever (#bullrun2024đđ )
In my opinion, the bearish move was partly due to the news of Israel and Iran being on the brink of war in the Middle East.
I would like to tell you such a move will not happen again in the crypto market but nobody knows for sure what will happen. We can only speculate.
However, there are actions you can take to protect your funds from getting liquidated while profiting maximally.
Firstly, don't ever open a trade without managing your risk. This is a basic rule of responsible and profitable trading.
Even with a "perfect" setup, anyone who trades without applying a stop-loss (SL) in this unpredictable market is begging for a blown account.
In addition to a SL, also apply a take-profit (TP) to secure your profits unless you plan to stay glued to the screen.
Secondly, keep your ears open for news about war and political elections, especially the US presidential election. If Donald Trump wins as I hope he would, we can expect to see the crypto market go bullish.
Finally, use your technical analysis to identify good entry prices into the market and manage your greed.
Happy trading, Frens!