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▲ Bitcoin (BTC)/ChatGPT generated image
It has been asserted that investors who make money in the Bitcoin market are not those who correctly predict bull and bear markets, but rather those who control losses and secure profits within a predetermined structure, regardless of whether prices rise or fall.
On May 5th (local time), the cryptocurrency-specialized YouTube channel Altcoin Daily emphasized in an uploaded video that the first thought a Bitcoin (BTC) trading beginner should abandon is the question, “Is the market currently a bull market or a bear market?” The video pointed out that since the market repeatedly rises, falls, and moves sideways, a strategy that relies solely on predicting the overall direction is disadvantageous, and the key is whether actual profits were made.
The video cited trading examples from Mindpillar Markets. The host introduced that the channel provides chart-based analysis, risk management, and execution strategies for Bitcoin and the cryptocurrency market. In particular, DeWalt's trading method was explained as a strategy that utilizes both long and short positions according to the chart structure, rather than a bullish perspective that only sees rises or a bearish perspective that only sees falls.
DeWalt stated that he made profits multiple times even in sideways periods. He explained that he entered long positions near the bottom and realized profits at the top, and entered short positions near the top to secure profits during falling periods. The video emphasized that a more important criterion than “Did you hit the bottom?” is “Did you make money in that period?” It was argued that even in a market where Bitcoin loses direction and moves sideways for several months, a trader who can read the structure can create opportunities.
Risk management was also presented as a key basis. DeWalt explained that he entered a long position near approximately $64,000 and had already realized 50% of the profit. This is a measure to protect the position in case the bottom breaks down again. In another trading example, the first major resistance level was set as the target, a stop-loss was established, and a risk-to-reward ratio of 2.4 was explained to meet the minimum criteria. The fact that some profits were locked in at the Fibonacci 0.382 level and the next profit-taking level was presented as approximately $75,200, near Fibonacci 0.5, was also mentioned as a basis for a phased liquidation strategy.
The video emphasized that even if a long position is taken, an opposing scenario should also be prepared. DeWalt explained how to hedge with a short position, considering a bearish scenario where Bitcoin could drop to $63,000. The logic is that even if the price plummets and the long position is stopped out, the short position can partially offset the losses. The video's conclusion is that the key to making profits in Bitcoin trading is not predicting direction, but rather the execution ability to predetermine entry price, stop-loss, profit-taking levels, and hedging strategies.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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