Recently, the crypto market has finally rebounded after a continuous decline, which has made investors full of expectations and brought uncertainty. Is it time to buy at the bottom or continue to wait and see? The following is my practical strategy to help you better seize this opportunity!
Step 1: Determine whether the rebound is an opportunity or a trap
Rebounds are usually divided into "bear market rebounds" and "trend reversals". How to judge?
1. Observe the trading volume: A rebound accompanied by an increase in trading volume indicates strong buying power, which may be a signal of a trend reversal.
2. Technical indicator confirmation: For example, whether Bitcoin ($BTC) can steadily break through the current key resistance level, such as $95,000.
3. Changes in market sentiment: Pay attention to the discussion heat on mainstream media and social platforms; market sentiment is usually an important reference for trends.
Step 2: Develop a clear entry strategy
1. Build positions in batches: Do not buy all at once; use a phased approach to spread risk. For example, divide the funds into three to five portions and invest gradually based on market trends.
2. Set stop-loss levels: To avoid potential false rebounds, set the stop-loss point below important support levels to ensure losses are controllable.
3. Choose quality assets: Prioritize mainstream cryptocurrencies with large market caps and strong liquidity, such as Bitcoin ($BTC) and Ethereum ($ETH), or potential coins in hot sectors.
Step 3: Balance between short and long positions
1. Short-term trading: Suitable for highly volatile coins, taking advantage of rebounds for quick profits.
2. Long-term holding: For assets with long-term potential like Bitcoin and Ethereum, consider a dollar-cost averaging strategy.
3. Focus on popular sectors: Fields like AI, Layer 2, and Web3 may become the core sectors of the next bull market.
The rebound in the crypto market is a stage where opportunity and risk coexist; rational analysis and a clear operational strategy are key to success. Investors need to closely monitor market dynamics and make cautious decisions.
