Bitcoin can offer incredible opportunities, but navigating the cryptocurrency market requires a solid strategy. Avoid these common pitfalls to protect your capital and profits.

1️⃣ Do not buy Bitcoin below the 200-day moving average (MA)

The 200-day MA is an important long-term trend indicator. When Bitcoin trades below it, it signals weakness and the potential for further declines. Always wait for a decisive move above the 200-day MA before considering entering a trade.

2️⃣ Do not buy when the trend is down or sentiment is negative

Downtrends and bearish sentiment can leave buyers with long losing trades. Look for clear signs of a trend reversal, such as higher highs and lower lows, before entering.

3️⃣ Don't buy when the price breaks out with low volume

A breakout with weak volume usually indicates a fakeout. High volume shows strong institutional support and confirms the move. Always check volume levels before acting.

4️⃣ Do not buy near strong resistance zones

Resistance acts as a psychological and technical barrier where price often reverses. Wait for price to break above resistance to avoid getting stuck.

5️⃣ Do not buy when the 50-day MA is falling

A falling 50-day MA indicates weakening momentum. Only enter when the 50-day MA is sloping up, signaling new strength in the trend.

6️⃣ Don't buy at the end of a Parabolic rally 🚀

Market euphoria is a trap for many traders. Sharp corrections often follow rapid price increases. Stay calm and avoid FOMO (Fear of Missing Out).

7️⃣ Don't try to catch the bottom

Trying to time the exact bottom is risky and often leads to losses. Instead, wait for stability and confirmation of an uptrend before making a move.

What should you do? ✅

🔹 Buy Breakout: Enter when Bitcoin breaks above key resistance zones with high volume.
🔹 Using Moving Averages: Use the 50-day and 200-day MA to confirm the trend.
🔹 Understand psychology: Accumulate during times of extreme fear, not excitement.

🔑 PROTECT YOUR CAPITAL

Cryptocurrency trading is risky—never trade with money you can’t afford to lose. Be disciplined, focus on risk management, and don’t chase the market.

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