Many people made a lot of money in the last bull market, but what really matters is not how much money you made. It’s about how much profit you can keep when the inevitable bear market comes.
Many people who were successful in the previous cycle ended up losing all their profits due to greed, fear of missing out on potential future gains, or poor planning
With that in mind, today I’m going to share my cryptocurrency profit-making strategy to maximize my profits in a bull market.
Your profit strategy should be tailored based on two things:
1. Time range
2. Are you a trader based on technical analysis or an investor based on fundamentals?
The majority of my capital is invested in long-term investments, with the occasional short-term trade based on fundamentals and volatility.
Therefore, in this article, I will focus primarily on my strategies for profiting from long-term positions and short-term narrative investing.
But before we get started, here's a tip:
Whether you are a long-term or short-term investor, try not to be a loyal crypto community member who never sells, because nothing goes up forever.
The main reason many people struggle to make a profit is that they feel like they have become part of the project community and no longer think objectively.
The harsh truth is that 95% of cryptocurrencies will eventually die, and if you don’t make a profit, someone else will.
I take short-term positions based on crypto narratives that I expect will gain huge traction.
There are many things I consider when trying to predict, but the three most important ones are:
Social media hype, which projects are trending on crypto Twitter right now?
Upcoming catalysts (new product launches, multi-chain expansion, etc.)
Coins Recently Bought by Smart Money
I would profit on these positions based on fundamental and technical factors.
First, the most important thing to remember as a narrative trader is that 90% of hype events eventually turn into sell the news events.
Let’s take a look at BTC price action following the Bitcoin ETF approval.
Although the Bitcoin ETF is now witnessing huge inflows, in the short term, its approval ended up being a major selling news event.
This may be because the market has already priced in Bitcoin due to the crazy hype surrounding the event on crypto Twitter.
So when I buy a coin that I plan to hold short-term because of an upcoming catalyst, I usually take profits on a portion of my position or even sell it entirely before the date that catalyst lands.
Next, as I said above, I also use technical triggers to take profits on short-term positions.
I'm not much of a trader, but I do believe there is a psychological element to the price trying to break out of previous resistance levels.
For example, below is a candlestick chart of FXS price. We also entered FXS at 6. It took a long time to get it. I was full of confidence and saw double digits, but the position of 10 could not be reached, so I repeatedly reminded everyone to sell at the position of 10.
As you can see in the chart above, I’ve marked the price levels with blue lines that the coin has struggled to break through many times in the past.
One way to make incremental profits on a crypto position is to mark all the key resistance areas of the coin and sell part of the position when the coin reaches another resistance area.
Now let's look at another example.
PENDLE, a token mentioned many times by group members, has recently risen to its previous all-time high price and exceeded it. (But I missed it)
The reason for this increase is that Pendle’s TVL has also surged recently due to its new yield trading pool re-staking tokens for Eigenlayer’s liquidity.
For a coin like this that enters a price discovery phase and keeps hitting new highs, you can't profit based on the technical triggers I mentioned above.
However, there is a strategy you can use: contrarian betting.
Inverse investing is the opposite of a fixed investment and involves withdrawing the same amount of money from an investment at regular intervals.
For example, you could sell 20% of your position every week.
It's not a perfect strategy, but this way you will be able to lock in some profits while still letting the rest of your position run if the price continues to rise.
When it comes to long-term investment, I don’t mean that it has to be three to five years to be long-term. But rather those coins that I plan to hold on to until the later stages of the bull market.
I believe the crypto market will continue to be cyclical. Friends who have experienced bull and bear markets know that it makes no sense not to sell them in a bull market and then buy them again at a lower price in a bear market.
I take profits on my long-term positions based primarily on fundamental triggers when I believe the top of that bull market cycle arrives.
Until then, I will only hold my long-term investment positions.
Some crypto top signals from the last bull run:
Some other better peaking signals are:
Regardless of fundamentals, every shitcoin will soar
Google search traffic for the word “crypto” surges to new high
When these things start to happen, you can assume that we are in the final stages of a bull market and it is time to sell off most of our positions.
I plan to do this using a contrarian pricing strategy when these top signals occur.
Next, this may seem crazy, but there is one technical indicator that actually predicted the tops of Bitcoin’s past three bull cycles.
That indicator is called “Pi Cycle”
The Pi Cycle top signal is generated by combining 2 daily moving averages.
When one of these moving averages crosses the other, the Pi Cycle signals the arrival of Bitcoin’s all-time high for that bull cycle. (As shown in FIG)
Based on historical data, Pi Cycle is the most accurate indicator for Bitcoin to date.
Why is this indicator so effective? It's a mystery, but I personally plan to take profit on my long-term position as well the next time Pi Cycle gives a sell signal.
No one really knows what will happen next in the financial markets, but in many cases you can increase your chances of success by studying historical data.
That's all for today, I believe we are still far from the top of this bull market. But it’s a good idea to start developing your monetization strategy now.
When the market reaches an extremely hot stage, it can be difficult to convince yourself to take profits if you don't already have a plan to exit the take-profit position. Source: deep tide
Later, we will bring you analysis of leading projects on other tracks. If you are interested, please click follow. I will also compile some cutting-edge information inquiries and project reviews from time to time, and welcome like-minded people in the currency circle to explore together. If you have any questions, please comment or send a private message
