Why Every Support Breaks In the Crypto Market Till Now
Everyone is super happy when the price goes up. It was thought that the BTC price would hit 100K. There were crazy predictions and positive news in the market. But what we saw in the crypto market was unexpected.
From analysis, we can make an educated guess of what would happen. But the truth is, no one can guarantee that something is going to happen at a specific time.
BTC price started falling. We hoped it would bounce back at some point. We were looking for support. Probably, from that support level, the BTC price would bounce back. It did not happen.
It was assumed that BTC would bounce back from 30K. There was strong support at that level. It broke. The crypto market teaches us a lot of things. I'm learning. When we look at the market, it is very important to see what's going on and where it is right now. Is the market on an uptrend, sideway, or downtrend?
The crypto market is on a downtrend. When there is a downtrend in the market, every support will break. On the flip side, when there is an uptrend in the market, we see the price falls and moves near the support, it bounces back from that level.
If you do trading, you can take your entry from the support in an uptrend market. On the other hand, you should look for resistance in a downtrend market. If you want to trade at this time, you can short at the resistance level.
I think futures trading is very risky. Putting a stop loss is a must when you do trading. Otherwise, even if you make some profit doing trading, you will give it back all to the market.
So the market moves in a trend. If you don't consider that, you will make the wrong decision. As a result, you will end up losing a lot of money. What do you think? Please feel free to leave your comments!
Thank you for reading this post. That's it for now. I'll be back with another post.
