February 26, 2024

Navigating Heavy Selling: A Strategic Approach for Crypto Investors

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The global markets are currently experiencing substantial selling pressure, impacting not only the cryptocurrency market but also various other markets, including India. As a digital asset manager, it’s crucial to adopt a strategic approach to navigate these challenging conditions. Let’s get into the specific scenarios affecting Bitcoin and Ethereum and explore potential strategies to mitigate risks.

Bitcoin, having reached its high at $49,000, is now undergoing a corrective phase. Technical analysis reveals that BTC has found support at key levels, initially at the EMA 50 and currently at the EMA 100. However, there is a looming possibility of breaking this support, potentially leading to a decline to the $34,900 level.

Bitcoin Outlook: Breaking Support Levels

Trading Strategy for Bitcoin:

  1. Monitor EMA 100 Support: Keep a close eye on the EMA 100 support level. A breach could trigger further downside movement.
  2. Set Stop-Loss Orders: Implement well-placed stop-loss orders to manage risk effectively. This is crucial in a volatile market to limit potential losses.
  3. Evaluate Hedge Opportunities: Consider diversifying your portfolio with tokens linked to hedge funds. Platforms like HootDex offer opportunities for such diversification.

Ethereum Outlook: Breaking Support Levels

Ethereum, after reaching $2,100, has crossed its support level. Further breakdown could lead to a dip to $2,000. Traders need to be vigilant to safeguard their positions in the event of such a scenario.

Trading Strategy for Ethereum:

  1. Confirm Support Break: Wait for confirmation of the support level break at $2,100 before making any decisions.
  2. Prepare for Downside: If the support breaks, prepare for potential downside movement to $2,000. Having a clear exit strategy is vital.
  3. Explore Diversification: Consider focusing on markets with linked tokens and hedge funds. Diversification can act as a risk management tool.

All trading activities for the managed Digital Asset (DBT) take place on HootDex, a decentralized digital asset swapping system. The managed account, Berigora Trading DBT, provides real-time visibility into publicly available trades. Leveraging platforms like HootDex allows for more control and transparency in managing assets.

In times of market uncertainty and heavy selling, it’s crucial to approach trading with caution and a well-thought-out strategy. Monitoring key support levels, implementing stop-loss orders, and exploring diversified investment options can aid in managing risks effectively. As the market evolves, staying informed and adaptable is key to making informed decisions and protecting your assets in the ever-changing landscape of digital asset trading.

Learn more about Berigora Trading DBT’s manager and trader Pooja Maurya and her views on digital asset and global markets here:

Youtube: https://youtube.com/shorts/SehKBtr3c7Q?si=rrOThyrxye23kzrx
Medium:https://medium.com/@poojakmaurya1114
Twitter : https://twitter.com/PoojaMaurya1408
Substack:https://open.substack.com/pub/poojamaurya

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