Bitcoin Cash - Surviving Market Corrections
So, this is reality. Yes, crypto is a long-term big bull run that’s nowhere near global adoption levels. That is the truth. However, there’s a saying everyone has heard before
The market can stay irrational longer than you can stay solvent
Time frame is what matters. Over the course of 2018, I’m sure we’ll see even greater parabolic growth in crypto. The question is, if markets correct, can you survive until then?
I survived the September and October bear markets. I didn’t trade it particularly well and took some pretty big hits to my positions and wealth and even though in the end everything is fine and I have quite solid gains for the year, the losses generated then cost me gains I can’t recover during this bull run.
Here’s a reality check for you if you’re one of the “lol it’s crypto noob markets correct noob” camp.
Price just went from $4,100 --> $1,600 in 2 days 6 hours.
October’s BTC massive market correction dropped the price from $4,300 to $2,900 in about 3 days 6 hours
We just experienced a substantially more violent correction than October panic was. This is not unique to Bitcoin Cash, as all markets suffered the same fate with the exception of a few outlier shitcoins.
What it does tell you though is that the bull run is over until proven otherwise. This is a key premise that you must accept. The fastest way to lose money trading is to be trading in the wrong direction.
Here’s a very realistic scenario to consider.
I’m not a fan of elliot waves, personally. I feel like too often they’re virtually guessing and too often they’re something you end up fitting over an already finalized chart. That being said, during classic patterns like an ABC correction they can be pretty accurate.
This would be a major one, to say the least, but 2017 has made people forget that Bitcoin can and does also correct on a huge scale.
This is the weekly chart on Bitstamp. This is the longest price history of Bitcoin that is available on TradingView. They’re the only exchange that has lasted through all these years, including the Goxing.
Think it over. Zooming in, this was a similarly violent dip back during the collapse of the $280 BTC bubble. These are daily candles.
And these are the Bitcoin Cash daily candles.
Neat how it dumped to exactly Tenkan (red Ichimoku moving average). Kumo twists both red and green. That’s also very telling.
The market will absolutely be fine, in the long term. However, the long term is a painful and difficult chain of days and weeks if you get stuck at a top.
The point is that you must adapt to changing situations with incomplete information. You must control both fear and greed, and you must have a strategy and a plan.
This thread is going to be a long-term trade meaning we're going to be using 6H candles only. Updates will be slower and less frequent because of that, but the thread will go on for a longer period of time as well.
Behind the wall I've prepared a general strategy for where to sell your core position to take profits and how and why you should take profits at those levels, along with much advice about how your thinking and mindset must adjust to the situation.
The thread will have trading-style updates, but will run longer-term alongside shorter-term timeframe trades.
The downside to this post will most definitely be if price just completely recovers and rocketships. That being said, this post is also a general wisdom and principled post that should have universal value all the same.
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