Patrick Wieland offers his advice about how to trade cryptocurrencies in a bear market. A bear market is when the whole stock market is losing value.
When day trading in a crypto bear market, don’t trade a crypto that doesn’t have a lot of volume behind it. Look to Bitcoin, Ethereum, Litecoin, and other coins with large market caps to bounce back.
Wieland brings up the example of Litecoin, not because he thinks that Litecoin is an overall great coin but because the charts show that it bounces back up after huge sellouts.
Wieland advises viewers to look for the support areas. A support area is a price point at which the market will buy in to make sure the value does not drop below a certain point. For Litecoin, one support area is at $100. Wieland points out that whenever Ethereum gets down to $100, people buy into the market and the price jumps up. Wieland adds that support areas are easy to find because they usually are at incremental prices (for Litecoin – $100, $200, $300).
Wieland tells viewers to look for big sell-off days, “I want to look for major red days when people say, ‘The party’s over and everyone is cashing out.” After those days you should buy back in. Not on fairly bad days but really bad days.
Go into every trade with a plan. Have your gain and loss limits set in place ahead of time. Don’t get obsessed with trying to sell right at the peak, sell most of your investment once you’ve hit your target profit.
Remember that even in bearish markets there are always ways to make money.
“Day Trading Crypto is never easy but if you wait for a big massive sell off to support area you can grab some nice profit on the bounce back. They key with this strategy is focusing on patience and waiting for the next big crash.”