If you don't play your role well, you risk missing out on generational wealth.
Bull Market Drop Buying Guide:
Bull market declines lead to panic, sell-offs, stock market crashes, calls for the end of the bull market, and giant price drops.
If you are prepared for this, you can rotate your funds at the lows and capitalize on what you earn.
Otherwise you will end up selling the lowest...
1. Key macroeconomic levels
First, I like to mark key macroeconomic levels on longer time frame charts.
This helps me create expectations as to where support would be IF we were to move lower. ($BTC, 1W)
For additional confluence on key levels, use moving averages and Fibonacci levels.
If you want to learn them, I have free tutorials about it in my telegram (link in bio)
For example ;
The ATH of the previous cycle aligns with the 0.5 Fibonacci retracement level for the current $BTC move.
Now, as an example, let's say I am convinced that one of the major support areas for BTC may be the previous ATH,
I will be prepared to buy any major market crash that heads into this zone and bounces.
To make my purchasing decision, I follow another process:
(This is the backbone of my mean reversion strategy.)
1. Look for a sharp pullback to a support area
2. Look for an aberrant volume spike
3. Buy the SFP rally or limit the support level after a bounce
For example :
In August 2024, the $BTC underwent a massive correction of around 30% into a key S/R level.
The price pulled back sharply and there was a major volume spike with no follow-up market sell-off
This indicated exhaustion of market selling and provided an ideal area to take a long mean reversion position.
If you study the price of BTC in all previous bull markets,
you will notice the same major setbacks.
The key is to have a plan and execute it despite the panic, despair, fear and chaos you see on 𝕏 and social media.
So what do we buy during these drops?
You can buy $BTC again and trade it at the same or higher levels
Or you can find altcoins that have shown strength during these pullbacks and buy them.
This is especially a great time to buy strong altcoins like SOL, AVAX, ETH, PEPE, WIF, etc. if BTC dominance starts to fall.
Because this would indicate that people are moving funds from BTC to altcoins – which is a great sign of the start of any major altcoin bull run.
My full thoughts on bull market money flow:
But how do you know when the trough will occur?
It’s not. But the good news is that you can prepare for it in advance, because the likelihood of a major bull market bottom is almost certain.
Here's how to do it:
1. Take profits
Everyone has the fear of missing out syndrome of taking profits too early in bull markets, but you will never reach the top, so be comfortable leaving potential profits on the table.
Taking profits on the rise allows you to set aside money to buy on the decline.
2. Plan your purchases
Make a clear plan for what percentage of your profits you will take out of the market and what percentage of profits you will reinvest in the dips.
This, coupled with a list of altcoins you want to buy, will make decision making 100x easier when everyone is panicking.
3. Patience
Just like timing the peak, you probably won't be able to time the trough perfectly.
This is okay, because the probability of the dip continuing in a bull market remains very high, so it is a relatively safe bet.
Just be patient: the markets will soon recover.
4. Repeat
Repeat this, but each time reduce your exposure to the market.
With each drop in $BTC, the strength of the trend weakens and the probabilities slowly move away from our favor.
You don't want to buy the last dip with all your profits continuing to fall indefinitely...
Having a clear plan will eliminate all uncertainty and fears associated with your execution.
It’s the power of studying markets and using data to your advantage.
This is how I achieved financial freedom and made millions in bull markets since 2017.
