A Healthy Purge In The Crypto Markets

A Healthy Purge In The Crypto Markets

By Sapphire | Sapphire Crypto | 4 Dec 2021


A Grasp On Reality

It is not really encouraging to see your portfolio bleed out so quickly, as we have just experienced this weekend's flash crash. Bitcoin lost 15% in a single hour and was down as much as 22% in a 24 hour period. This is now a good and solid crash and could later edge even lower. What always transpires after such a dump is an immediate bounce. I personally added to my leveraged long ETH position in this dip. I allocated more funds but am awaiting further price action to develop before increasing it yet again.

How Can You Still Be Open After Such A Crash?

Some may be wondering how I can still be in my leveraged positions after a 22% crash. Well, when you have been trading for almost 15 years and paid your fair share of "school fees", you eventually develop a pretty solid strategy. I have mentioned and hinted at some of my approaches in my writing but at the end of the day it mostly comes down to smart capital allocation techniques and low leverage.

You can't trade high leverage in this game unless you are scalping and at very key and selected points in the progression of price action. We have seen 30% and 40% drops before in a bull market but this was all at once and not played out over days or weeks, making it rather significant. For this reason, I am watching and taking note of Omicron narratives doing the rounds.

9fb600a7609f86d9bd1fdb5e31ce98f1c95491710ae29cda1a363f0ef56c9442.png

Free Polygon

If the media spins this out of control again, we could experience another mini "March 2020"! Some may argue that it is already a mini "March 2020", which is reasonable I suppose. Either way you look at it, this has been a healthy flushing out in the market. A cleansing if you will, of greed and inexperienced traders and investors. We may also see many leaving the market now after failing to break the 70K zone on numerous occasions. This is not necessarily a bad thing. The Crypto markets behave like this and if you don't factor that into your strategy or approach, you are living in a bit of a fairytale delusion.

This Is Reality

This is the Crypto market and this is to be expected. Your strategy should incorporate the bullish approach to profit, as well as the bearish. My bearish strategies kick in now and I use them to my benefit. When the trend shifts, my bullish strategies will kick in and be beneficial.

6421887d1f6c2065db69c7b2c2478fc50d26878b1647ef9fe5faa838b1eb4666.jpg

You have to play both sides with the goal of increase and or accumulation. This is how you get to go out and enjoy a coffee and brunch over a weekend that has seen the market dump so severely. I don't worry because I am hedged with numerous approaches that can counter this downturn to some extent. This is what everyone needs to plan for their own unique strategy because it is the only way you will be able to sleep at night. Before I made these adjustments, life was too stressful but it was that stress factor that encouraged me to find ways to make downturns work in my favor. 

Enjoy the ride and never stop brainstorming on how to make every possible situation work in your favor.

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

dc85cc652d13571a8860e8d6d812239d8018dee27b8af3215e915b12c7ae0528.png

be16f86b20bd9dd120b840e96e857d9da9b6d67126aa3ef58eb1c1340ffcab37.png

Free Solana

623972a32590fc90500b125a176f2c2a02639b6a5187029ef39c9626d9db3c73.png

Free Hourly BTC

6f9a0c642043cc0f39017a24b281e69158d5fc20a28f9fd6b4c8be0183ec0bfb.png

More Free BTC

8a5d6a060400f1887bd85685d488ae493be6905b20eb5e260fd03f1f6ed4d14b.png

Even More Free BTC

How do you rate this article?


76

0

Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice. Sapphirecrypto.org


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.