Bitcoin price crashed by %15 and dropped to $30K this week. JPMorgan analysts have also stated that this is going to be even worse. The increasing trend of capital withdrawal from the market, China’s opposition to Bitcoin, and occurring death cross in Bitcoin price chart confirm the bearish market. So, which is the best strategy? Buy? Sell? Or hold?. In this article we are going to discuss what to do in bearish market.
What to Do In Bearish Market?
Michael van de Poppe, who is a Dutch analyst and trader, stated in an interview with VICE website that following the increase in Bitcoin price from $3750 to $64000 in short term, a correction was predicted. Even though he was also surprised by Bitcoin crash, but believes that investors should not sell their bitcoins in this period. He believes that “it’s now time to buy Bitcoin to make the capital double”. He added that “It’s too late to sell. Now it’s time to focus on information, foresight and even more buying and investing.”
However, Greenspan believes that users’ conditions in the market are different. This means that the appropriate strategy in bearish market depends on which step the user has bought crypto. For example, if he bought Bitcoin few months ago, now he has gained profit. According to Greenspan, if you invest logically, you will never face crisis. It means you should invest what you are able to lose. He suggested investors to wait and not worry about the current market status. (Except in bearish status)
In general, the key for a successful investment can be summed up in a few words. buy in low, sell at high. As a result, falling prices represent opportunities to buy, strengthen activity and invest more in the market. Therefore, there is always a chance to gain success and you should not give up. What is your strategy? What are the features of a bearish market in your opinion?