- EllioTrades Crypto warns about common trading misconceptions and traders’ impulsiveness during a bear market.
- The YouTuber thinks if traders aggressively short and long, they may lose their investments.
- The analyst also posits to start buying in once prices of cryptocurrencies revert to their lows.
Amid Bitcoin’s current price action, which saw the market leader fall from a seven-day high of more than $25,000 to around $21,000, YouTube cryptocurrency analyst warns about common trading misconceptions and traders’ impulsiveness, especially during a bear market.
YouTube account EllioTrades Crypto reminds market watchers that the bear market is about confusing traders: “getting [them] jump in and be emotional.”
Wild price rallies that go on so long that make [traders] think it’s another bull market. And then quick and really swift price collapses that make [them] think, ‘Oh, the bottom’s just gonna fall out.’ Neither [scenarios] are true.
EllioTrades Crypto reminds traders to “expect the unexpected and be extremely careful.” He warns that if they go short and long aggressively, they may lose a lot of their investments.
Further, into the video, the analyst hopes that traders have the stamina and extra funds “for when things get really bottomed out.” He believes that many traders will flip short. Notably, flipping is when a trader reverses their position in the market to generate profits from a new technical trend.
The YouTuber posits that when prices revert to their lows, traders should start buying in and plan their buying strategies. Notably, the Bitcoin bottom that the community saw was around $17,000, while the Ethereum bottom was lower at the $1,000 mark. “If we break through those lows, I’ll expect another significant notch down. [This is when] I’ll start really buying in as we get past that dump.”
He added that the next dump is the one the analyst expects to really buy in, saying, “I will be buying slowly.” The YouTuber explains that he thinks that these things will take time to work out.
Expect the unexpected. Nothing is simple. Slow and steady wins the race in the market. Patience is a superpower.
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