Over the past few years, we have witnessed significant volatility in the cryptocurrency market, with Bitcoin at the forefront of these scenes. The events that took place in 2018 and 2022 in particular provide unforgettable lessons for every investor in this volatile market.
During the 2022 crash, Binance experienced one of the most difficult moments in its history, going offline for about an hour and a half, preventing investors from exiting their trades in time. This brutal experience confirms that the decline in the cryptocurrency market can be faster and more severe than some imagine.
Bitcoin, which saw a stunning rise to $69,000, then fell to $15,000. Those who have experienced this experience know very well that the great hope of continuing the rise can turn into huge losses if the right decisions are not made at the right time. Some expect that Bitcoin may reach $1 million, but reality shows us that anything is possible in this market, even a drop to levels close to zero.
When trading in the cryptocurrency market, you should be careful when approaching price peaks. If you have made good profits from the bull run, exiting at the peak areas is a wise decision. The areas between 96,000 and 100,000, for example, are considered disposal areas by many analysts, regardless of whether the price rises a few thousand more after that.
The key here is to analyze the larger time frames and not focus on the smaller moves. This comprehensive view allows you to make better strategic decisions. If you are in an area close to the top, holding cash can be the best option. In case of a strong correction, you will be able to benefit from the decline by buying currencies at lower levels.
Investing in cryptocurrencies requires caution and attention. When you smell danger in the market, do not hesitate to exit or reduce risks. Liquidity is a powerful weapon that allows you to return to the market at the right time.
Top tip: Always be prepared to act wisely when trading, and don’t let excessive hope or greed control your decisions. The market is always full of surprises.
