Looking at the long-term trends, they're especially favorable after a significant bearish stretch. Now, folks can trade bitcoin in the future market for over six months without worrying about funding rates. It’s the move to always hold your position, even if you’re in the red. If you’re feeling a bit riskier, go with lower leverage or stick to spot trading. What’s everyone’s opinion on this? Is this the phase we’re currently experiencing? Seems like a solid strategy for swing traders coming out of a prolonged bear market.
Top strategies for swing trading
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chainone510Hero Member
Posts: 19 · Reputation: 4318
#2Feb 2, 2024, 08:47 PM
You are right. For long term Bitcoin investment, market downturns work well. But it is better not to plan too much in the short term. Even if the amount of Bitcoin purchases in a cycle is small, increase the number of purchases, for example every week instead of every month. The strategy of continuous Bitcoin accumulation is more important regardless of the price.
I personally do not like the short term spot market for Bitcoin. I prefer the long term DCA method. Trading is a kind of gambling. Bitcoin is an asset for long term accumulation and holding only then the desired return is expected.
I agree with you considering the current market situation, but I have some disagreements about how effective swing trading would be here.
If the market is in a prolonged downturn, you will have to pick the lowest priced coins, which will be extremely difficult.
Also, to be successful in swing trading, you need to enter the market with a relatively large portion of your funds and get immediate updates.
mr_satoshiFull Member
Posts: 21 · Reputation: 256
#4Feb 3, 2024, 02:59 AM
It's entirely possible you'll get lucky if the market behaves as it has in all previous bear markets. But what if this time things are different, and instead of a rally in the fall, we see a continuation of the bear market, or a decline, or a longer sideways movement that misleads you, making it unprofitable to hold such a position for too long? It all seems simple now, but the market is tricky and can change.
I think this would be for those who has a larger equity to sustain themselves for long position and even though the market is not going to their direction it would enable them to sustain a long period before it would change direction to their trade.
And yes, anyone who doesn't have a large amount to hold a long position would definitely lose, of course we can't actually predict the market at all time or even knowing when it would change, and like said it's unpredictable.
Seriously if I am opting to actually go long with bitcoin and the duration is for a very long time, I will simply just buy and Send to my personal wallet and hold, any long for duration of six months means that there is possibility of my position going against me, when most especially the bearish market is prolonged plus this means that I will be entrusting my coin to an exchange for that long. So instead of even lower leverage to avoid my position getting liquidated I will definitely prefer to have it on my wallet
Being proficient in chart analysis and having a solid grasp of market technical analysis patterns is the best approach for swing traders that I have discovered thus far. After that, you should never chase a trade; instead, you should always follow the market's pattern until you identify a distinct pattern that fits your strategy, lock it in (take the trade), and break even when the trend is favorable.
Exactly, no strategy is ever straightforward in the market.
This is why you must have a proper understanding of whatever strategy you are employing to gain profit from the market, including this one suggested here, because following a strategy like this blindly without understanding may only lead you to more losses because the market doesn't care about rules and can go against them at any point.
If swing trading is not also your thing, you can stick to day trading.
neonhub390Newbie
Posts: 199 · Reputation: 24
#9Feb 7, 2024, 11:49 AM
I think spot market is better than low leverage. Even low leverage has a high risk of being liquidated in mere hours of a dump/pump. Cryptocurrencies are far too volatile (for now- in the future we will see less volatility with more adoption, I think).
I think we are about to cross from bear to bull. It seems we are already at the bottom. We could perhaps see another small dump and an immediate pump in the next days but it seems more likely we will pump to 80K+.
The bear is tired.
Bitcoin drops about 80% during a crypto winter. So holding a leveraged position with a swing trading strategy is simply unrealistic. You have to trade spot only and spread your grid across 12 legs.
As for holding a position even when it goes into the red, I agree, but with a caveat. For entries, I use the Bollinger Bands indicator on daily candles with standard presets. I enter when a candle crosses the lower band. When the price climbs back to the middle line, I set a stop-loss at my entry price. This tactic cuts down the number of losing and stuck positions.
In the screenshot, you can see that out of six entries during the crypto winter, only two got stuck. The last trade was made almost exactly at the market bottom
When it comes to trading, swing trading is indeed the recommended strategy and for good reason, since it carries a lower risk than day trading or scalping. In times like these, we must be able to think clearly, as nearly all holders are likely currently in a position with floating losses. However, it would be better to focus primarily on long-term investing, continuing to make gradual purchases using the DCA method, this is a better way to accumulate Bitcoin.
On the other hand, if you still decide you want to seek profits from trading, its better to trade in the spot market, at least if the price drops, youll only see a decline in value, not a loss of assets. Compared to futures, if you get liquidated, youll lose everything.
Are you insinuating that we are in a bullish market, or that the bearish market is over?
Or you're just saying we should wait until the bear market is over?
Cause I can say to some certainty that we are still in the bearish market.
With trumpmental sitting on the markets right now, swing trading might just be the solution.
I've seen alot of traders complaining most recently about how crazy the market has been. Just one tweet from trump and everyone is on fire trying to check if they got burnt by their positions.
Bitcoin has been reacting too much to trumpmental which is unlike it. That's why it's better to trade on the bigger picture. We can't even tell if the bear market is over anymore. So many speculations in then market but nothing is pointing us to any direction.
One minute we are up the next dropping from the sky like a jet taken down from the sky..
satoshi_quantumNewbie
Posts: 112 · Reputation: 18
#14Feb 9, 2024, 01:29 PM
With a good entry as swing trader, youll most likely make a very good profit in the long time especially if the market has now fully change trend and now making a series of higher highs and higher lows in the market.
This is not for spot traders, even if it may be profitable to them also. Traders with high quality skill set tends to enjoy this move for their swing trades the more. When I see a good catch like this, I might opt into swing trading but the market can never still remain trusted for best consistent result even while on the swing trade.
atlashq460Senior Member
Posts: 53 · Reputation: 874
#15Feb 11, 2024, 04:37 PM
I think swing trading is actually only effective when theres clear trend confirmation, like when we see a clear downtrend. For example, if we see that Bitcoin has the potential to keep falling, we can take advantage of that by placing a short position in the futures market. Meanwhile, the spot market is currently only suitable for accumulating Bitcoin. As for accumulating altcoins, I think we need to reconsider. After all, its still unclear what stage were in right now. Are we heading toward a deeper bear market, or are we actually heading toward a market recovery? Because if we look at the Bitcoin trend in the market, Im more optimistic that within the next few weeks or months, well see Bitcoin attempt to rise again, perhaps back toward the 85k range. But for altcoins, Im still unsure. Under current conditions, its better not to do too much swing trading for now
A long period of bearish doesn't mean that the market will shift to bullish. That is not a good entry for me when doing futures but on spot it is fine if you are doing DCA.
Remember that we should never trade against the current trend because my strategy is always looking for a bias, trend, and how strong the momentum is. I'm not going to go long here because the chances of making a profit are slim. It may spike a little, but because my rules never allow me to trade against the trend, I'll skip this trade or look for potential retracements to short.
It requires some conditions. If you are a swing trader, you must wait for trend breakouts that create new higher highs, as well as any momentum indicator that changes to bullish before entering.
If you lack discipline and are too greedy, it's best to utilize the spot market for trading, allowing you to create a period of several months for your Bitcoin selling position. The risk is much lower, although the profits aren't as large as those in futures trading, as we're not talking about leverage and are more akin to holding assets for several months to achieve profits.
If you relate it to futures trading, you also need to consider the amount of capital you have and then use much lower leverage to withstand liquidation when the Bitcoin price drops more sharply than expected. All plans carry risks, so if someone can't afford those risks, it's best to choose an effective strategy like spot trading.
orbit_hodlerMember
Posts: 317 · Reputation: 47
#18Feb 13, 2024, 07:46 AM
I always prefer day trading to be sincere because the pressure of funding rates and that of being liquidated any time there's a major news headline is just too much stress on its own. A 6 month+ trend with focus and perhaps a target of a specific price range may be a better investment strategy than even trading.
So it's a long term based on a time frame of accumulation or just day trading altogether for me, also because we are more veering in the direction of a utility driven growth than a speculation phase we originally started with.
miner_byteSenior Member
Posts: 63 · Reputation: 1067
#19Feb 15, 2024, 05:50 PM
When it comes in futures trading I can just make a leverage of 20x and sometimes I only have a capital of 100-300$ per trade so its a swing trade so of course you need to consider a fee for hodling for a longer time frames but still profit right now, now actually you dont need to play with futures instead even spot trading because swing trades with a 4H to 1D chart is quite enough to make understanding on what are the current situation of the market you can do take profit too when it makes good break out and then if there is a potential of CHoC you can make pull out still you manage to have gains. Personally spot if you are busy and then tooks month to TP and futures if you have quite time to watch the market.
My trades don't have much impact on funding rates; there are ups and downs in the funding rates, but it doesn't much affect my trades since it was always below 0.001%.
It's frustrating when you're trading with other coins and there's a large gap on the spot with more than 1% funding rates, positive or negative. I guess this only happens on low market cap coins, but I don't see high funding rates on major coins like BTC, Ethereum, or Solana.
Well, if you are looking for 6 months or more, we are currently in the second quarter of this year; June would be the 6 months; however, if you look at the chart in a larger view, we are still bearish, and the current price action is forming a trend that is yet to turn bullish. If this $80k breaks, it will signal a market shift to bullish, but I expect rejection to retest the previous bottom price at $60k and wait for rejection, which could form a double bottom for a broader view before the price potentially becomes bullish until the end of the year or next year.
If your strategy works for six months, stick with it. What I see is that you intend to hold a position longer than the swing trading; it should be in spot trading if you don't want to be frustrated on funding fees.
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