Is anyone still excited for 2025?
I want to share a good strategy for 2025. In fact, you can apply it to get a head start in 2024 to prepare your coin ammunition.
We will do a Market Overview first.
First market overview: how will BTC move this December?
The market is very clear about one thing = Wide Volatility.
December volatility is so wide that many flash dumps or flash pumps occur in one day. This causes many traders to be confused and panic of course. Although we will always try to control our psychology, but still the name of the flash dump and pump is very unpleasant.
What are the impacts of flash dump and pump?
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If we look at ETH, then the movement of ETH which is the benchmark for alts is also very volatile. BTC goes down, then ETH and other alts also go down. There are some coins that even tend to move Bearish because of this market structure and are supported by the narrative owned by the coin which is not very supportive. There are some examples of bearish coins such as MOODENG, ACT which are moving in their bearish trendline.
So, what can we do now to survive in a market like this?
The market is bullish, but it moves very volatile and causes instant chaos suddenly in the market.. It's a bit troublesome, but let's try to break it down one by one!
The first strategy is that we will respond to a volatile market like this. There is one strategy that you can practice if you encounter a super volatile market, namely Raise Cash.
Yes, raise cash or increase your cash ratio.
The purpose of raising cash is that you trade with a smaller capital, or your trading frequency is lowered. This is because a volatile market will provide a greater risk, namely Uncertainty. What initially looks bullish can become bearish, what was initially bearish can immediately become bullish in just 5 minutes or even. In this phase too, it is very natural that our win rate is rather low because the dynamics of a volatile market can make us hit our risk limits. Therefore, if you encounter a market like this again, you need to increase your cash ratio and use smaller capital so that your exposure to risk is lower.
The next way is Scalping to Swing Trade. Scalping to swing is a trade that prioritizes scalping as the initial target of the trade, then if the price goes up, you can leave 30-50% of the capital to become a swing with a higher target. Why is scalping the main point of trading during high volatility? Because with scalping, we can get fast momentum from volatility and our risk is better maintained. Although, it is necessary to note that with scalping make sure the trade plan used is also mature, not just entry because of FOMO!
Then, the next strategy that I will share is about swing and invest trade.
The left one is the bullish phase and the right one is the bearish phase (Typo drawn).
What does it mean? During a bullish period like this, try to buy the dip. Buying the dip is not done carelessly either. Buying the dip during a volatile period like this can be done by identifying weekly support and resistance for Alt coins. Why weekly? Because the volatility of an Alt can usually be high, so we need to spare support that is "lower" and better to be our position to make a purchase
An example of the use of weekly support is in SUI. We can easily identify weekly support from SUI because it is already well printed on the chart.
Actually, you can also use the Daily Timeframe.
We can buy the dip at lower support so that we can anticipate the sharp decline that occurs. The SUI case informs us that lower support is stronger because there is a lot of demand in that area.
Those are some strategies that you can use, make sure to keep checking how BTC moves because the market moves dynamically. So it is necessary to continue to adapt every day so that we can know the direction of the market.
The main key that I can mention = look for Important Support Resistance.
Goodluck !