By: Damian Okonkwo
The year 2022 has proved to be an unprecedented feast for the bears in the crypto market since the history of cryptocurrency. Bitcoin for instance had been trapped below 30K consistently for the past six months marking the first half of 2022. Historical records have shown that this is the first time Bitcoin had remained below a given range for more than six months. This bearish dominance, had caused the greatest number of liquidations for crypto traders this year - who severally forecasted a breakout for Bitcoin above the current range but were disappointed to be caught up on a false breakout. More than 120Billion investments have been recorded as the amount lost by traders who got liquidated from their longing positions in the market this year alone. Spot traders who considered Crypto trading as an investment have seen their portfolio return to dust; with more than 80% loss of value. This has pushed many newbies to raise the question: Can one make profits in the bearish Seasons？ Well, this article has responded positively to the foregoing contention while elaborating on the possible ways to make profits during the bear season.
How can one make profits from crypto trading during the bear season？
There are two possible ways to make profits for crypto traders during the bear season. These two secrets are revealed below:
Scalping on Spots: The only viable option to make profits from spot trading during the bear season is by scalping. Usually, the market rises and falls from one low to another during the bear season. To this end, spot traders need to identify the lows (including lower lows) of their favorite coins whether Bitcoin or altcoins during the bear season and scalp their pullbacks and retracements from the two lows during the bear season. This means buying at the lowest support and selling immediately on getting to the first short term resistance and waiting to rebuy during the next dip.
Shorting on Futures: Another reliable means to make profits during the bear season is only by spotting the top for each periodic bullish movement as to go short on futures. This means marking the different resistance zones created during the bear season and proceeding to short the market from this point on futures or margin trading once the price retest those regions again.
Thus, scalping the market on spot position and shorting the market on futures and margin trading could be considered the only way to remain profitable during the bear season and escape liquidation from over-leveraged longing positions.