When crypto spikes, exit the market

[EL MOHA]

The defining characteristic of the market is its volatility. If the market were stable, no one would buy cryptocurrencies, and it would be more like traditional markets such as forex and stocks.

To simplify this, we can say that even traders will not exist most especially future traders because what is there to predict when everything is almost stagnant, at least other trading like spot buys can be done but aside that it will be just another traditional market again.

A spike does not mean the end of a run.  People who exited the Market at highs like 20,000 Dollars years ago waiting for a big crash may have not expected a 60,000 and then a 120,000 high later on.  This is trying to time the Market and if you miss the timing only once, it can be enough for you to lose all the other profit you made with your perfect timings.  I wish it was as simple as buying crashes and selling spikes.  It is not, they are not always preceded by the other.

For bitcoin there is no top at the moment so any spike up is just another all time high in the midst of multiple all time high that will come. This one reason why even during dips I don’t tell people to actually wait for a specific price to buy, best thing is to DCA your way in gradually if not you will miss good opportunities

[Potato Chips]

Or consider holding long term, so you won't sell at loss and come back even stronger. I believe the BTC market will bounce back. 

With memecoins though, I would jeet that in a heartbeat lmao. Especially when BTC crashes, and altcoins take so much more toll with shit loads of memecoin could never recover from the bear market, essentially turning to dust.

[Alphakilo]

One can't just take an exit and then come back to the market hoping to make some profit. Traders can exit but merchant traders are called so because they knew how to maneuver themselves in such spike periods. Afterall, this isn't the first time the price of Bitcoin has taken a spike.
Just restrategize and observe the market, because it must change for the better no matter how long it may take and the most consolation is that altcoins and memecoins will suffer more if bitcoin fails, so that's the more reason why the market will balance out sooner than later for others to remain in business.

[PrivacyG]

For bitcoin there is no top at the moment so any spike up is just another all time high in the midst of multiple all time high that will come. This one reason why even during dips I don’t tell people to actually wait for a specific price to buy, best thing is to DCA your way in gradually if not you will miss good opportunities

What do you mean there is no top?  Bitcoin is over 20 percent down from the All Time High.  Is that not a top?

[shinratensei_]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

Hugely depends on your strategy. If you're trying to get a quick profit with short term trading then that's okay. But for long term it'll lost you opportunity.
Had I sold my money when price spiked from 55k to 65k I wouldn't be having huge profit when bitcoin finally reaches its ATH for this year.

If it's altcoin, I would've solved honestly. Holding altcoin feels like holding shitcoin and holding bitcoin feels like holding gold. Handful of people would do the same.

[jostorres]

One can't just take an exit and then come back to the market hoping to make some profit. Traders can exit but merchant traders are called so because they knew how to maneuver themselves in such spike periods. Afterall, this isn't the first time the price of Bitcoin has taken a spike.
Just restrategize and observe the market, because it must change for the better no matter how long it may take and the most consolation is that altcoins and memecoins will suffer more if bitcoin fails, so that's the more reason why the market will balance out sooner than later for others to remain in business.

It is never a good strategy to come back to invest again after exiting the markets. Usually it is the time where we take a break and spend on a good vacation before we can find another entry point. Taking another trade just after exiting the trade will just make you regret about closing your initial trade and will be a riskier move as long as you are not a scalper. Even short term traders will take some time off and will come back the next day after analysing the markets.

Opportunity will never come twice so if you loose the opportunity by closing early does not mean you should again try to grab the opportunity as all you will get will be regrets and you might even end up losing all the profits made from the initial trade.

[michellee]

But people should be careful with their greed because many of them want to make more profit instead closing their trades. They don't think that if the market spikes will not always continue. Often the price will go down and have a correction price so they should know when they have to close trading. We can take profit when the price increases and no need to wait for another high price. We don't know how long the price will stay at that price so rather than losing the chance to take profit, it is better we close and enjoy the profit.

[Koadharber]

One can't just take an exit and then come back to the market hoping to make some profit. Traders can exit but merchant traders are called so because they knew how to maneuver themselves in such spike periods. Afterall, this isn't the first time the price of Bitcoin has taken a spike.
Just restrategize and observe the market, because it must change for the better no matter how long it may take and the most consolation is that altcoins and memecoins will suffer more if bitcoin fails, so that's the more reason why the market will balance out sooner than later for others to remain in business.

It is never a good strategy to come back to invest again after exiting the markets. Usually it is the time where we take a break and spend on a good vacation before we can find another entry point. Taking another trade just after exiting the trade will just make you regret about closing your initial trade and will be a riskier move as long as you are not a scalper. Even short term traders will take some time off and will come back the next day after analysing the markets.

Opportunity will never come twice so if you loose the opportunity by closing early does not mean you should again try to grab the opportunity as all you will get will be regrets and you might even end up losing all the profits made from the initial trade.

Traders who jump back into the market immediately after exiting often make decisions driven by emotion instead of logic when you rush to reenter thinking you’ll catch the same wave again you usually end up chasing losses or entering at the wrong point that’s why patience and timing matter more than excitement.

Once you exit the best thing to do is to step back breathe and let the market show its next move bitcoin has always had unpredictable spikes and dips so forcing trades only adds stress the wiser move is to reanalyze your strategy and wait for confirmation before committing again. Like you said merchant traders survive because they understand timing and restraint they don’t panic or rush after missing a move they let the market settle and act when conditions align again the market always cycles no trend lasts forever and there will always be another opportunity the real skill is recognizing when to act and when to stay still.

[Judith87403]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

In this case, it’s also very possible for the late birds to get even more worms than the early birds crypto like they say is unpredictable, and the point you feel is the best time to leave or exit the market might just be the beginning of a wild ride and those who stuck around for much longer, ends up with the most juicy amounts and then the early birds starts regretting why they exited in the first place. I mean it happens all the time, which is why everyone needs to have their own unique strategy that works for them and just stick to it. Sometimes you win and sometimes you lose, that’s the market and you can’t expect to win all the time cos you won’t.

[tvplus006]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. ..

It is very difficult to determine this very turning point when you need to sell your coins before the onset of the bear season. But if you sell coins when the market is growing, then you risk receiving less profit, as the market will continue to grow.

[allthebitandbobs]

Spikes can be a good exit point but only people who feel left out or those who have just started their investment journey will buy the peak thinking the markets will continue going up and will give them profits for a very short term. They mostly end up in loss as the markets crash after hitting a peak. Rarely, markets will still continue going up depending on the bull season but this is not very often. We should learn how to control our emotions because controlled emotions will always make us stay away from these riskier moves.

It also is very difficult to identify the exact peak or spike so the exit points can be a bit challenging to find. We need a strong analysis to know when exactly to exit. We can't just see a single spike and exit immediately.

[BlackBaron]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. ..

It is very difficult to determine this very turning point when you need to sell your coins before the onset of the bear season. But if you sell coins when the market is growing, then you risk receiving less profit, as the market will continue to grow.

It's true, it's difficult to find a peak point where we can exit the market with a substantial profit. Because when we exit, it might be just the beginning of the market surge, so we won't get the maximum profit.

However, when I predict the market will surge again, I usually exit with only my capital and a small profit, and then I hold the rest until I'm absolutely certain that it's the highest point, even though I'm often wrong. But at least we won't regret it too much because we still have something to sell.

[programmer3666]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

i feel the best time to make profit is before the spike! not when the price is already flying. because generally many traders get excited and FOMO in at the top, then end up holding the bag when the price cools down. taking profit during a spike is usually the smarter move because the market surely pulls back afterward so the early position is what gives you the real advantage not chasing the pump

[SmartGold01]

I think you aren't defining anything here, like in what aspects are saying of making spiking to bull what areas?
Of course usually when market spike (bullish) some people wouldn't want to trade while some would want to trading and open a long position as long as the market keeps going on the same bullish direction they opened position, but when the market get them trapped they wouldn't have any other options that to hold automatically while it bounces back to their preferred level or position before they could starts opening another position again just for them to make profits and recovered what they had already lost while trading.

[Emitdama]

It's always better to have a profit and not make random moves....also because I don't see any real correlation on this... and I would avoid any move based on "stereotypes".

There's people that even they make random moves, they can still get lucky and profit and then the ones who have a strategic approach are sometimes wrong with their calls but over confidence and greed can also lead to a loss of profits that we already made earlier. The correlation for those who are making random moves must be that they are still a newbie or doesn't take things seriously?

I mean they only do this to past the time or this is their way to entertained their selves just like how we do it in the casino. I think this isn't wrong, especially if they still know their limitations.

[palle11]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market.

Remember, Early birds get the worms.

This is true but not in all cases because sometimes when market spike, it is also as a result of manipulation to chase the stop loss of some traders and that is why you see the market going back to the initial direction. So it depends on the hour that the spike appear. For example you won't compare the spike that happened in 15 minutes to the spike that happened in 1 hr or 4 hrs, they both have different impact. You can not also conclude to exit because their is a spike, you have to compare with what other indicators are directing too. So it is not a clear picture about just a spiking candle.

[Zigabel]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

I agree with this, spikes are really opportunities that should be taken advantage of at every moment. Some other traders see them as a beam of hope for further move but they fail to understand that many people who where in on that trade will want to be exiting so as to take their profit meanwhile some others would want to hop in thinking it is the best time, it is really better to exit then so you will have less to worry about when there is a reversals.

Knowing when to exit is also a very important skill you need to acquire as a trader but only a few consider it as much, they mostly allow greed and believe they can be able to gwt more so they should allow the market move some more only for them to begin to experience loses while expecting that extra move.

[HONDACD125]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

It's easier said than done. If it were that easy to make money from this market or trading in general, everyone in the world would have been into trading and investments, and no one would have been struggling for money as long as they had some money to begin with; however, it's not that easy. You can't always predict the movements of the market, so it's not only about the market going up after you make a purchase, it's also about knowing when you should and shouldn't buy, because what if the market goes the other way around after you make an entry?

Imagine this: You buy some coin, even Bitcoin, and as soon as you make the purchase, the market starts declining, it keeps declining, weeks go by, months go by, but the market doesn't go up, because the bear market has started, and then you have to wait for years before the market actually gets back to the point where you had bought, and then it goes in profit, and you get to exit then. What then? One should ask themselves this question, and understand whether they will be able to wait that long after making the investment, if yes, then go for it, if no, then they should think twice.

[bigimann]

In what direction? We can have these market spike to the bearish or bullish side, so what would be the direction to exit the market when you spot a spike? Having this kind of mindset as a trader would ruin your discipline and over time you find yourself in losses. You might think it's a good thing to exit early just because the market wasn't favourable but it's not. You have to be abel to stay strong as a trader, no matter what direction the market is heading. Once you have your confluence you let your trade play out regardless of the outcome. Trading was never meant to be easy, but if you build a wrong mindset it would make it more difficult for you...

That might be a spike in the upwards direction just because of the sentence "Early birds get the worms."

Anyway, this is more applicable to those position traders who have been holding their Bitcoin alongside other altcoins for years already, and TBH, I'm also waiting for the final spike towards the upside before I sell all of my altcoins. Exiting early can be a disadvantage or advantage for you, but most of the time, it will be a disadvantage. Anyway, just like what you said, trading isn't that easy because it will test you in every aspect. From decision-making to being disciplined, from being patience from not moving until the setup isn't an A+ to everything that you need from trading. Of course, it will cost you money along the way, but as soon as you learn it and you're profitable already, that will be forever AS LONG AS you're trading.

As for OP, maybe specify that "SPIKE" that you're pertaining too because it can go both ways.

You raised some strong points @HATCHY, especially about how a SPIKE can mean different things depending on the trader’s timeframe. Many new traders see a sharp move up and assume it’s the beginning of a rally, when sometimes it’s just the market grabbing liquidity before reversing. And yes, long-term holders often wait for that final push to the upside, but holding too long can turn a good profit into disappointment.

The market doesn’t pity anyone, so having a clear exit plan is almost more important than catching every last percentage of a move.

For me, the important thing is not exiting TOO EARLY or TOO LATE, but defining what a “spike” actually means inside your own strategy. If your plan says to take profit at a certain level, then that’s what you should follow. Long-term investors shouldn’t panic over every quick pump, but short-term traders need to react fast. At the end of the day, trading is a test of discipline and emotional strength, and that is where most people fail. OP should definitely clarify the type of spike being discussed, because an upward spike and a downward spike are not carrying the same message at all.

Peace and love ✌️

[davis196]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

It seems to me that you are disappointed because of the current crypto price drops. Have patience. Everything will be alright in the long term.
Now is the time for us to remember the saying "Bulls make money, bears make money, pigs get slaughtered". The people, who enter the market at a FOMO phase and help in maintaining the price growth are the ones, who help us make higher profits. Don't discourage them. There will be more FOMO waves to come. We need new money to enter the cryptocurrency markets. And please don't compare the Bitcoin market to the memecoins market. There's no room for comparison.