Get up to date on the latest analysis and trading tips with our Crypto update week 45
- Polygon Breakout Above $1, Here is Where the Rally Could Top
- When and where is the bottom for Bitcoin?
- Crypto Trading 101: Locking In Profits Like A Pro
The price of Polygon (MATIC) decisively broke above the $1 significant psychological level, which gives bulls hope for a lasting rally. While the bullish case scenario is strong, the current price structure hints at where the rally could top.
MATIC Bullish Case
The bullish cues emerge from two essential technical setups:
- First, we have a classic golden cross signal as the 50-day simple moving average cross above the 200-day simple moving average.
- Secondly, based on the Elliott Wave analysis, MATIC’s price is in the process of completing a Flat price structure.
Flats are 3-wave patterns with an internal structure subdivided into 3–3–5 waves. The Elliott Wave view suggests the cycle from the June low has completed wave A at $1.05 high, and the pullback in wave B ended at $0.68.
In the short term, we are developing the last push higher in wave C, which has a 5-wave internal structure. For this price structure to be completed, wave C needs one more push higher after the pullback in wave 4 is completed.
MATIC Price Targets
The 3-wave flat corrective pattern will usually target the 1, and 1.272 Fibonacci extension levels of wave A measured against the wave B low.
On the MATIC price chart, these correspond to $1.427, respectively $1.628.
It has been a challenging week for crypto, with Bitcoin dropping over 20% in 2 days before recovering slightly. While this drop can undoubtedly be attributed to the negative news regarding FTX, when watching the overall trend, Bitcoin was actually due for a drop this month. This leaves many people asking, “When will Bitcoin finally reach the bottom, and how low will it go?”; this is what we will answer today!
When will BTC Bottom?
It is impossible to say the precise date when Bitcoin will find the bottom, but we can make an educated guess based on past bear markets. Bitcoin has experienced 3 long bear markets so far during its existence. The first occurred in 2014, the second in 2018, and the current in 2024. As you have noticed, they are about 4 years apart. That is because Bitcoin follows a 4-year cycle, where a peak and a bottom are reached around 4 years apart.
With this information in mind, we can guess that the bottom of the bear market should come somewhere around November or December this year, as that is 4 years apart from the last bear market. However, as we all know “history doesn’t repeat itself, but it often rhymes”. Therefore we cannot expect to be 100% accurate with our prediction of a bottom in November/December, but it should be close.
Where will BTC Bottom?
If we are to study history again, we can see that the bottom of the previous 2 bear runs came after an 86% and an 84% drop from the all-time high. That means that if the trend continues and Bitcoin drops 82% from its all-time high of $69,000, we could be looking at a bottom at around $12,500.
Again this is not rocket science, so the bottom could be between $10,000-$14,000.
Looking Ahead: Unless other impactful negative news occurs, Bitcoin should find a bottom between $10,000-$14,000 in November or December. However, since you can never buy an asset at its lowest point, it can be a good idea to buy in small increments as it continues to fall, essentially averaging down. Cryptohopper has automated this for you through our DCA feature, so you don’t have to watch the market constantly to catch Bitcoin at lower prices.
There are 2 main ways to lock in profits in the crypto market, among several others, that every serious crypto trader must follow. Knowing when to cash out of your crypto holdings is equally important or even more important than when you entered the market.
#1 Use a Fixed Take Profit
First and foremost, using a fixed take profit is one of the simplest and most effective ways to cash out on a trade that goes in your favor. A fixed target can be anything from a key resistance level, an old swing high, a big round number, or a fixed % away from your entry.
#2 Trail Your Stop-Loss
The most practical way to lock in profits is to trail your stop loss until the market stops you out. If you keep trailing your stop loss as the market moves in your favor, it will be very difficult not to build your crypto trading account in the long run.
This take-profit strategy has many advantages. The greatest benefit is that you can potentially make a lot more money when there is a strong uptrend, as you will follow the trend until the end. However, the only drawback is being stopped out prematurely by an unwanted price spike, which you’ll need to accept as it will occur from time to time.
If you’re in a winning position but don’t know where to lock in profits, this strategy may be best suited.
Bottom line
When it comes to trading, locking in profits is essential if you want to be successful. However, it’s not always easy to do. With these tips, though, you should be able to lock in profits like a pro in no time. Just remember to practice patience and discipline, and you’ll be well on your way to becoming a successful trader.
The crypto market is known for its inherent volatility, but there are numerous opportunities to take profits. Given the uncertain nature of the market, there is no perfect formula to take profits, however, there are certain strategies that can help optimize your gains.
These strategies help users understand how and when to take profits, and when to execute an exit strategy.
