Liquidity and Opportunities: How to Avoid Severe Corrections in the Cryptocurrency Market?
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In the world of cryptocurrencies, the same scenario is repeated with every new market cycle: the violent corrections that Bitcoin goes through are accompanied by huge losses, especially for those who did not witness the big drops in years like 2019 and 2022. If you are one of those who believe that Bitcoin is losing its dominance to altcoins during these periods, let me tell you that you may have fallen into the trap of “laughing at the beard”.
The truth is that altcoins may benefit slightly during Bitcoin’s bottom, when natural corrections to the upside occur. But when new price highs are reached, liquidity begins to leave the market to take profits, leading to a general decline that affects the entire market, including Bitcoin itself. In such cases, meme coins are the only ones that may achieve a relative gain of no more than 10%, which is too small to be considered as an investment strategy.
Golden tip: sit in the stands
At this critical point in the cycle, I repeat what I said in my previous articles: “sitting in the stands” is the best option. Let the market determine its direction until the current negative cycle ends, expected on January 24. If you insist on trading, do not risk more than 5% of your portfolio’s liquidity, and make sure to keep most of your liquidity in USDT, so that you are ready to take advantage of opportunities when the market stabilizes.
For those who attended the landing: You know the market well.
If you have witnessed previous Bitcoin crashes, you are well aware of the risks and how important liquidity management is at such times. If you have not been there, it is better to be cautious, as the market is unforgiving to beginners or optimists without scientific foundations.
My vision in the digital currency market
My trading policy is clear and based on deep experience and study of market cycles. I share these insights with you so that you are informed, and the final decision is of course yours.
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