Every bull run begins with a wave of capital inflows, something that excites those watching enough to cause FOMO. As a result of that FOMO, traders and paper holders are getting emotional about holding “this damn coin that just doesn’t do anything.” While you see others line up in a straight line, then magically dump their positions at the wrong time.
It’s not about capturing the first wave of huge profits. The point is to use that as an indicator to see how these things actually turned out. However, there is one catch. You should only attempt this if you understand it to for this process to to be successful, it should be observed and implemented with little to no compliance emotion. Also also don’t listen to social media or you will almost certainly fail.
The wave of capital inflows is receding, just like water. If so, let me tell you what we do know. Every bull run that preceded us started with Bitcoin rising to the Fibonacci mark of 0.50. Only when BTC crossed that line did things become exciting. The 15-17 bull run will be the main focus of this article, due to a word limit.
Step One – Where Do I Start?
Since the bottom of the bear market, Bitcoin has been the safest bet until .50 lying. Then we need to keep an eye on our radar for what has technically broken out in mid-market stocks doubling BTC’s gains in the same time frame (+/-). Turn in your allotted trade amount without apology, no “hodling” based on feelings, or “the team”, etc. This isn’t so much about that, but about the current eyes on them. Also, like Solana this cycle, and Ethereum during the 15-17 run, there should be plenty of time to scale out.
Step Two – Rotation Time
Then I scale up the gains to the fundamentally strongest large and medium caps. cCurrently, the ETH/BTC reversal (since the write price breakout) indicates that, and the strongest within the ERC-20 family are the ones to watch right now IMO (as seen in the chart below).
Fortunately, with some trading education and experience, the timing of these things becomes much less of a guessing game. If you study Elliott’s Wave analysis, Wyckoff charts, chart patterns, volume, etc. If you do this correctly (as seen in the chart below), you can find yourself right on the edge of these runs. Which leads to a very happy trading account.
Where I move the weight next is on clear Fibonacci extensions of the runners (which I measured by their previous movements). I’ve seen it too many times in this place not to understand and appreciate that history may not repeat itself, but it often rhymes. You can most easily identify the next runners through their technical issues that occurred as Bitcoin crept up the fib scale and corrected on key POIs (as seen in the chart below).
The mechanism of capital inflow, flow down the line, all the way through the small caps, microcaps and NFTs, etc. The way to make huge profits is relatively easy in a bull market if you’re in it from the beginning. The next trick is to keep the profits.
Step Three – Securing Profits
To maintain profits, there are a number of ways to measure objectives, as previously mentioned with Fibonacci extensionsvolume combined with weekly candles, sentiment, Fibs, Elliott’s waves And Wyckoff’s distribution schedules are more than enough to come away with bags of profit from every run. So if that’s a thing important for you: take your time to put in the work to learn for yourself or always depend on the advice of others.
If you are interested in what I do and when, keep an eye on NewsBTC or follow me Tweet for breakout and other relevant charts as I release them, as the run progresses, or DM me if you’d like to know more.
I leave you with a few warnings that I have tried to share with my students and people close to me, spoken from experience and spoken only in the hope that these words will protect anyone who reads this from the same harsh lessons I and everyone I know here have found this out the hard way at least once…
If you feel invincible, take profits. When your extended family or friends ask you for advice about buying cryptocurrency, to take profit, and conversely, if they tell you to sell, don’t. Finally, one of the most useful pieces of advice I’ve learned is: just aim not the exact top for the “meat of the move”.
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.