Hello, traders. In a new current video, I want to talk about the High and Bottom during trading cryptocurrency. Indeed, in trading, it is important to buy cheaper and sell more expensive, that is, you need to catch the bottom, buy it off and then sell at the High after the price rises. However, in words everything is simple, but in practice, it is not. I’ll tell you in detail later in this video.
To the moon in cryptocurrencies
In the crypto, there is often a sharp rise or fall of tokens – the so-called pumping and dumping. But sometimes the growth of an asset is not caused by the manipulations of market makers, but the real demand of a large number of people for this asset. The rapid growth of electronic money, from 20% to 100% and more is called Tuzemun (flight to the Moon or Rocket). Moreover, the growth is possible rapid without rollbacks, and with a frequent decrease in the price by 5-10%.
Bitcoin is one of the first cryptocurrencies to see an extraordinary rise from USD 0.000763 on October 5, 2009, to USD 41.950 on January 1, 2021. Another example is the YFI coin, which appeared in the summer of 2020 and in a couple of months made an increase from $ 3,000 to $ 43,966 – more expensive than bitcoin! However, there are not always only increases in the price of electronic money – the same BTC for the first time when it reached the price of 18,000 in 2018, then fell to 3,500 dollars.
How to determine the High in cryptocurrencies
For this reason, it is important to stop on time in trading, fix profit by selling your asset. And then it is already cheaper to buy one or another token and again make money on growth, that is, to determine the High in trade. During Tuzemun, the first thing we pay attention to is technical and graphical analysis. We look at the trend line so that it is directed upward, as well as the support and resistance lines.
The growth cycle of a cryptocurrency usually lasts from 3 to 12 months, so you can be an investor and keep the same Bitcoin for a long time. Or trade and take profits every day and enter trades again. The first signs of a market decline are the loss of interest from large market players. On the chart, this is expressed as the breakout of the support lines, one after the other, over several days or weeks. In this case, you need to exit trades and wait.
How to determine the bottom in cryptocurrencies
Another option is to open Short Deals on Binance Futures. But it is not recommended to buy out the bottom right away, as the price may fall even lower. It is worth buying coins when there is a demand for them again from other buyers. On the chart, the price should bounce off the support lines and then breakthrough one resistance line after another. At least 3 major resistance lines must be broken to indicate a reversal from a downtrend to an uptrend.
This will be our bottom, which must be bought back. And then we are waiting for a new To The Moon and a trip to the Summit to sell the tokens at a higher price. Of course, trading is a very difficult task, and to make it easier for you to determine when to buy and sell coins, it is better to use a special tool – 3commas. Here it is possible to use bots for automatic trading with high-quality buy and sell signals for particular digital money.
The video about High and Bottoms in cryptocurrencies is coming to the end. I told you what the High, Bottom, and To The Moon mean in the crypto world, and most importantly, how to apply them in your trading. You should use the technical and graphical analysis with the 3commas platform for effective trading! That’s all until new videos on botcryptotrade.com