Good day to everyone on the forum today. The only thing we're going to talk about is how to profit in crypto. This is one of the most frequently asked questions among crypto investors, particularly newcomers and those who have been around for a while. What are the issues that must be addressed? What signs are available to determine where the top market has arrived? So that we don't buy at the peak of the bull market.
Assume you were one of the top buyers in the 2017 bull market and purchased Bitcoin for $19,000, or in the 2021 bull market, you purchased Bitcoin at a price of $69,900, believing it would rise further. In short, you were able to FOMO; you have no knowledge of technical analysis. The top buyers in 2017 would have recovered in 3 to 4 years if they hadn't panic sold in 2018, but the top buyers in 2021 are still underwater, or others cut at a loss and sold at a loss.
Normally, no one can anticipate where the exact top of the market will be, and anyone who can predict is not certain of what they are saying; in short, everything is just guesswork. And if someone claims certainty in his projections, this is the number one red sign in the world of finance. But this is what people like to hear, and it is something that many people do. And if you trust these folks who claim that what they say is genuine, you will be completely lost, with a 99% likelihood of becoming wrecked.
Today, we are discussing the absolute peak of the market, not the local cap; this is distinct. However, you may utilize the others on the list that I will provide. You can use it on any coin you own. Because this is applicable not only to Bitcoin but also to other cryptocurrencies. Because you might assume this is a reversal if it happens to another cryptocurrency. With a negative 90% scroll down from the top and hold your baggage for 3-4 years. How many of us have been through something similar? So this is just for investors and holders, not day traders, so that when you make a profit, you, like me, will wonder whether to sell or hold.
And surely these signs will help each other holders and investors so that you can decide on the crypto assets you hold. Especially if the signs appear at the same time, our assumption that we are close to the top of the market or that we are already at the top is getting stronger.
LET START:
1. Over extended price movement![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fwww.talkimg.com%2Fimages%2F2024%2F01%2F08%2FsYlUq.png&t=665&c=pmPdc9bKwPYxkg)
The image you see is an example of a parabolic curve, which occurs when the price of cryptocurrency or Bitcoin has risen too much and takes on a parabolic shape. It usually has numerous bases, however this section is a little tough. This is where cryptocurrency market behavior comes into play. It is 96x, just like Bitcoin from the bottom in 2015, from $200 to $19,000 in 2017. He only surged 21x throughout the 2018-2021 bitcoin bull market, therefore based on market behavior, his rise declined with time. As a result, we should aim to place our profit objective below the 21x rally. If Bitcoin doubles in the next bull market, it will be worth between $150 000 and $250 000. At current pricing, our goal is to profit because it is only conceivable to happen in 10x-16x Bitcoin, but altcoins can make 100x to 1000x profit, depending on how new the altcoins are.
since, in my opinion, the new cryptocurrency will actually climb higher in these scenarios since it lacks bag holders who are entrenched in the previous bull market and are ready to exit. That is why, with altcoins, it is up to us to decide when we want to exit and profit.
2. Reaching personal target goalsThis is the simplest: individuals who invest should have personal objective goals, and when those goals are met, we will sell immediately. We don't care if it goes 100x or if the token is held; let's get it done first. That's fine as long as we've met our goal. Others, particularly newcomers, have a problem in that they don't have an exit strategy; they simply buy tokens and then wish for the moon. Others, referring to themselves as long-term holders, just see purchasers and experience a price drop and fear, selling quickly, or see that the token purchased has pumped 1%, selling immediately or taking profit. When hybrids achieve a 1% profit, they quickly become day traders, and long-term holders.
So, what is your goal before you buy a token? Long-term investors or day traders? Because you can establish your profit target once you have recognized yourself in the crypto space market. So, what is your goal before you buy a token? Day trading or long-term investing? Because you can establish your profit target once you have recognized yourself in the crypto space market. It's simple: when I buy a token and it goes 5x or 10x, I'll sell it; or after bitcoin halving, I'll just wait a few months and see a 1000x rally in the tokens I hold; I'll sell it; or when I have reached your personal goals, such as you want to buy something and the value of your tokens has reached that, then sell it, and there's no need to look at the chart or think that the value I might miss it.
Your tokens can really rally, but they can also crash. As a result, it is case-by-case.
3.
Divergence between price and network activityThis suggests that there is a distinction between the two indicators, and that their movements are opposed. For instance, asset prices rise but network activity falls. The movement's direction is different because we can only state that the token's movement is healthy if the price value rises and network activity rises as well. it is increasing for a reason, and that reason is that the project is in high demand. In crypto, we can see network activity in onchain statistics, such as transaction volume and active wallets. The development of new wallets is increasing, which suggests that there are more users coming in or keeping tokens.
The network cost is rising, as is the hashrate for proof-of-work coins such as Bitcoin, and the staking metrics for proof-of-consensus networks are rising as more individuals stake tokens. However, if there is little network activity and the price rises, it does not rise, and there is not much happening in the onchain activity, indicating a divergence in the price movement in the network activity.
Then you should probably consider taking a profit now, because the price pump that occurs for the token you own could be caused by market makers or hundreds of individuals. And, sooner or later, the price will come down.
Hope this will give help additional knowledge to everyone
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