Yesterday, we saw BTC trading at 49k. That came as a surprise to me because I thought that the 55k-58k support zone would hold.

A lot of factors may have caused the drop, such us Japan imposing interest hikes, crypto taxes, unemployment rate, US recession, US moving their BTC stack, and more. Well the crypto currency market is a highly volatile sector, it can pump and dump anytime, for whatever reason, and without any warning.

So what are we going to do when we see a sudden drop? Here's my 5 cents.

👉 First, please don't uninstall your trading app, and hybernate for months. That's not a good idea. Never abandon your open trade.

👉 Second, don't catch red candles as they fall steeply. Why? Chances are, they're gonna drop some more or may instantly bounce back up. So whether you're going long or short you'll gonna end up rekt.

👉 Third, wait for the candles to consolidate and move sideways. This is a clear sign that market is in the process of pacifying the massive selling pressure. Once the selling is weak, you can go ahead and make your first buy entry.

👉 Fourth, don't ever buy all at once. Always practice dollar cost averaging. Buy at every drop. A drop can always drop further, hence devide your available fiat into five and buy each time price slides down. This way, you will lower your average buying cost.

👉 Fifth, the tricky one. If you're trapped and don't have any money to buy some more, the best thing that you should do is wait for price recovery and set a decent stop loss. Know that, risk management, and capital preservation should be your top priority.

Well, back to BTC. It has recovered swiftly, and is now trading at 55k. The daily KDJ oscillator has stabilized, suggesting that the selling pressure today is a lot weaker than what we have yesterday. Really good news for us moon boys.😆

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