How to Survive a Crypto Crash and Bear Market and not Lose all Your Money

Recently the price of Bitcoin suddenly dropped by 20%, making the whole cryptocurrency market bleed. People started talking about a new bear market – “Fasten your seat-belts we are approaching the crypto market crash.” But thankfully that wasn’t the case and coins restored their positions in a few days.

This is a common situation when bears enter the market. FUD rises on social networks and panic sentiments force traders to sell crypto. These actions only dramatize the situation so the fall may be rapid and you’d do well to go through this not losing your nerves.

Today we will discuss what you should do to survive a bear market and how to save capital during the crypto crash.

A bear market in crypto is a situation when the price of coins goes down and other traders reinforce this trend by actively selling the currency. In this way, a stable downtrend is formed.

by
Kai Sedgwick

If the crypto winter has placed your altcoin trading on ice, you were never a trader to begin with. Any fool can make money in a bull market, but bear markets are where knowledge is gained and future profits are carved.

Also read: Wendy McElroy: How Centralized Exchanges Intend to Devastate You

There’s an assumption, among less experienced traders, that once your altbags are underwater, there’s nothing to do but wait it out. Take up fishing; join a gym; kill some time until more favorable conditions return. Following the giddy euphoria of daily all-time highs, level-headedness returns. Clear thinking prevails when hype has been hustled out of town.

If you’re involved in the traditional stock market – or have some knowledge of it – you’re probably familiar with the terms ‘bull’ and ‘bear’ used when describing markets.

In fact, you may have heard of many different types of trading ‘beasts’ – all of which are used to indicate specific market outlooks and behaviours.

The world of cryptocurrency is, in many ways, radically different to the traditional stock market. However, the terms ‘bull’, ‘bear’ and even ‘whale’ are commonly used by crypto traders and investors alike.

To help you develop from cryptocurrency market beginner to expert, this lesson will focus on the key terms you need to be familiar with in order to understand market sentiment.

In the traditional world of stock trading, a bull market is one defined by optimism.

The Crypto-ML Market Index indicates the Bitcoin and broader crypto markets are now officially in a bearish phase. On September 24, the Market Index dropped convincingly past zero and into negative territory. This post will provide additional information on the current market conditions as well as guidance on how to handle your trades in this context.

We like nothing more than exceptional bull markets.

And we hope you do too.

However, to be smart and protect our money, we need to constantly seek insights into when the tide may be turning.

Back on August 13, we posted Crypto Market Analysis – Bearish Indications, which highlighted bearish formations appearing in our signals.

While the latest drop in Bitcoin price below $9,000 should not be a cause for concern when zoomed out, certain key levels must hold to renew bullish sentiment.

Bitcoin is now under $9,000 but the bigger bullish picture is still intact if key support levels hold

On Nov. 8, Bitcoin corrected from $9,200 to $8,650, causing the market sentiment to shift from greed to fear once more.

The correction came after one of the biggest surges in the history of Bitcoin (BTC), which makes the sentiment shift curious. Let’s take a look at the market overview and analyze the charts.

The recent correction made Bitcoin price lose the 200-Day Moving Average (MA), which is a key indicator for many traders and investors who rely on it to determine bear/bull market cycles.

Like the day after a night of hard drinking, the crypto market today is resting in bed, hungover. Very little movement has been observed since yesterday’s crash, which showed strong signals of market manipulation.

Be that as it may, the decisive direction picked by the cryptocurrency market could strongly influence the upcoming trading weeks.

Wednesday’s plunge helped undo many of the bullish signals previously observed. The death cross, or meeting of the 50-day and 200-day averages is set to happen tomorrow or the day after.

Prices are substantially more volatile than traditional assets, which means the swings are ripe for traders who know what they’re doing – and perilous for those who don’t.

If you are ready to step up and take your crypto trading to the next level, there’s a lot to learn, but it’s nothing you can’t handle.

Remember: Most traders will lose money trading crypto. Position yourself ahead of the pack by learning how to trade like a pro.

If you are just jumping in for the first time, you should start small and scale your exposure over time.

Staying safe should be your top priority.

One reply on “How to Survive a Crypto Crash and Bear Market and not Lose all Your Money”