Everyone thought that the bull market will
continue, but unfortunately, after the UST and Luna crash, it became clear that the bear
is out. Now we have ethereum at 1780 dollars. We have a good support at this level. The same situation is true for bitcoin. We are sitting in the dip of a support level
at 29 000 dollars. And of course, we will not talk about UST
and Luna price predictions cause ouhhh my, this entire TerraUST situation deserves a
separate episode. Today, we will talk about how not to lose
your money in the bear market, and even how to make profit from it.
As a lot of traiders like to say, you can
earn money in a bull market, but to get rich you would probably need a bear market. And in most cases, it’s true. Same way as a bullish market cannot last forever,
the bearish market will end sooner or later. And there are a lot of factors which can be
prerequisites for the ending of a trend. Bear market is a normal thing. We’ve been seeing crypto markets ups and
downs for almost a decade as opposed to the stock exchange market which tends to constantly
rise.
To have an only rising market, however, is
impossible. At some point, there must be a correction,
which comes as the bear market. The bear market we are seeing right now will
end and we will see higher prices for Bitcoin and Ethereum. Keep in mind though that it’s very hard
to predict when exactly the bear market will end. Most bull markets last longer than bear markets. But how to determine whether the bear market
is ending and when the market will get back to its all time high? No one can give you 100% right anwers to these
questions. Maybe it will take a couple of months, maybe
a couple of years. The most important thing is that you use the
power of knowledge, research and use a dollar cost averaging model when making decisions. First, if you are analysing the crypto market
try not to concentrate on many other cryptocurrencies rather than Bitcoin and Ethereum. There is only one cryptocurrency the price
of which often determines the price of other coins which is Bitcoin.
And it has always been like this in a crypto
space. No matter whether you are a trader or an investor,
bitcoin chart should always be on your radar to monitor it constantly. For me, personally, Bitcoin and Ethereum are
the two coins which are mandatory for checking every day. And it would be impossible for you to check
all those other coins and tokens on the market, cause there are just too many of them. Time is always limited and you only need to
monitor the main markets. Remember, the entire market always follows
Bitcoin. Next, let’s talk about support and resistance
levels. Usually, a bear market can get you into a
great dip point where you can get a new fresh start to invest into something valuable. You can imagine it as a discount voucher from
your grandma as a present, but in this case your grandma is a bear market. The main thing is that you never know when
the dip will end or which dip it will be, but you always know at what price level those
dips will be.
As for now, we are sitting in a possible support
price level for bitcoin and ethereum, and if the market will go deeper it will mean
that we would probably need to find the next support level. If you’re a trader or an investor, it is
very hard to say when the bear market will finish, but the possibility to get right on
where the dip would be is much higher.
We will not dive in into a lot of details
about it, but let’s talk about one thing called a support level. The terms support and resistance levels should
be familiar to you. Usually when the bear market comes, we would
probably find out at which price of an asset meets pressure or tend to act like a floor
by preventing the price of an asset to drop below this level. It is the place where market participants
see value and start to support this level and push prices higher. Third, let’s just talk about all this world
uncertainty which can probably be the main decision factor in our crypto investments. We are going through a very complex time. The war between Russia and Ukraine, Coronavirus,
Money Supply, US printed trillion of dollars all over the couple of years, the dollar supply
is ultimately high, we are facing major inflation, all things are getting more expensive. We are also seeing that the federal reserve
raised interest by half of a percentage point, the biggest hike in two decades. We might see more of those interest spikes
in the next few years.
Overall, there is just too much going on. One thing for sure. The acceptance of the crypto is getting bigger
and bigger,crypto is the right type of asset which will maintain a good value in the future
and probably, it can be one of the biggest wealth transfers which we are facing. Remember that there are a lot of people who
are using the bear market to make huge profits. I personally know some really good traders
who are constatnly waiting for bear market, cause they usually make more money with it. The most important thing which we can do is
to do the right research. Rather than concentrating on short term trends,
try to concentrate on long term trends. In all short trends, emotions dictate the
price, and in long ones, the true value of an asset dictates the price.
Gather knowledge and filter 99% of unnecesarry
infomation which can influence your decisions. Keep in mind that none of the information
provided here is financial advice. Subscribe to this channel for more info, hope
this episode was useful for you, this is your BunnyMoney channel, I am Vlad, see you in
my next video..
