How to make profits during a Bitcoin crash?

Written by Pedro Lopez

June 22, 2022

In the middle of the current Bitcoin bearish trend, its price has been pushed below the USD 20,000. This Crash caused large losses to investors, especially those that bought at price levels above USD 40,000. However, many others got the perfect investment opportunity, as well as to average their Bitcoin holdings.

Everyone who has had experience of previous bearish markets knows that, despite the losses, having the opportunity to buy at these prices puts them in a lucky situation. On one hand, it is estimated that we will continue to see lower prices and on the other, this bearish panorama allows you to learn a lot. How to make profits during a Bitcoin crash? Stay until the end of this article to find out.

Is investing during bear markets worth it?

History tells us that money will come alone and to reassure the newest, this will not be the last chance to invest. Since the market is Cyclic, there will be many opportunities to accumulate Wealth.

We are now living what we already lived in the past, allowing us to take advantage of the best and unique reasonable moment to invest in the Crypto space. Therefore, every time there is a bear market in Bitcoin, it is recommended not to repeat the mistakes committed in the past.

For those who are starting in Crypto investments, it is necessary to understand that this is the reality of the market. Studying and preparing is imperative to make profits during a bearish trend.

5 Things to Do in a Crypto Bear Market 2022 - Zipmex

How to make profits during a Bitcoin crash?

Trading is very personal and that does not depend solely on technical analysis, but also on emotional and psychological factors. For this reason, it is necessary that everyone prepares his strategy. However, the market moves according to certain patterns that allow us to take profits in the short, medium and long term.

Short sell crypto assets at their lowest highs

After many red days, the price usually looks for a “floor” or “support” and seeks resistances at higher levels. As the trend is bassist, rebounds in daily and weekly resistance are perfect opportunities to sell Bitcoin and Altcoins.

Buy when prices reach the lowest support levels

Upon reaching sufficiently low price levels, crypto assets go back up to higher resistances. These trades must be short-term, since the trend will continue to make red candles appear.

You must decide what percentage of your capital you want to use to collect profits and how much you would like to accumulate in the long term.

Knowing certain patterns, the key is to find a trading strategy in which one remains emotionally and psychologically stable.

What happens after a bear market?

Bear markets take prices to reach their lowest price levels during months. Although this does not mean that they will immediately bounce back up to their ATH (All-time highs).

Crypto assets are likely to enter an accumulative phase after the bear market “per-sé” ends. Prices will go up and down while capital enters the market. Once accumulation is done, Bitcoin will have a clear path for another bullish cycle.

Note that Bitcoin halvings always happen right before a new bullish market.

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