The Bitcoin halving, scheduled for mid-April, can trigger a bull run, as the reduced block rewards limit selling pressure, creating a supply-demand imbalance. Put simply, prices are likely to rise, and history suggests that the increase could be considerable. If the bull market is just around the corner, it would be interesting to know how investors can join in on the action. It could be weeks or months for the cryptocurrency market to move, but investing is a long-term endeavor, so there’s nothing more important than planning ahead. You could miss out on the strongest days if you wait for the right time or don’t make an effort to learn how to buy crypto. Are you ready for the crypto bull market?
Investing is complicated. It’s even more complex during a bull run. It’s possible to make a profit if you employ the right kind of strategies.
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Bitcoin’s Comeback: What Is a Crypto Bull Market?
The cryptocurrency industry is energized by Bitcoin, the largest and the best-known asset, which surpassed the $72,000 threshold due to the influx of capital into spot ETFs and optimistic expectations of an interest rate cut by the Federal Reserve. The following crypto bull run could start right after the halving and reach its peak in 2025. A bull market is a period of time when the prices of cryptocurrencies continue to rise due to volatility, demand, and market valuation. When analysts talk about a bull run, they allude to the high levels of trading volumes, strong earning potential, and the general good mood among investors.
A crypto bull market is the opposite of a bear market, which is characterized by asset prices that tend to fall over a long period of time. Bitcoin has already broken its vital resistance levels, so what other signs should investors look out for? Bull runs are marked by increasing institutional adoption, rising Google Trends, innovation in the DeFi sector, and high network activity, to name a few. Many investors adopt a combination of bullish and bearish strategies, depending on the market conditions. This allows for more flexibility, so they’re able to leverage any opportunities that might come their way. What do you say?
Have A Balanced Approach When It Comes to Investing
A bull run is a time of optimism in the cryptocurrency economy, but having an investment plan is key to navigating the likely benefits and potential risks. In other words, avoid the temptation of acting on impulse or in a foolish manner. Stick to your investment plan and rebalance your portfolio from time to time if it wanders more than 5% from your initial allocation. The more you wait for a market correction before investing, the more work it takes. It’s recommended to set a rule-based framework for using new funds. Dollar-cost averaging, for instance, is a practical approach to develop a disciplined investing habit, improving your productivity and lowering your stress levels.
When investing, people don’t think about how much money they can afford to lose. A bull market experiences both rising and falling cryptocurrency prices, so it’s possible to incur losses. Navigating a bull run requires strategic planning and, most importantly, risk management because fortunes can be lost in the blink of an eye. Virtually any investment involves some risk, so you’ll want to decide if you want to invest conservatively, aggressively, or moderately. One of the most important steps you can take when trading Bitcoin is selecting a reliable cryptocurrency exchange that offers deep liquidity.
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When The Market Rises, Avoid the Fear of Missing Out
More often than not, the cryptocurrency market takes investors by surprise, so they postpone buying. When missing out on potential gains, many compensate by taking even more risks, which can lead to excessive allocation. As the price of Bitcoin and other major cryptocurrencies increases, you must resist the fear of missing out (FOMO). Staying on top of the latest news and trends in the space is essential, but too much information leads to confusion, indecisiveness, and mental fatigue. Keep in mind that no one can predict the future, so you’re better off doing your homework and coming to your own conclusions.
The buy-and-hold strategy helps you take advantage of the upward trajectory of the bull run to realize a profit. Bitcoin has consistently traded upward over the last months, and even if prices are falling due to a temporary market correction, the cryptocurrency will most likely recover. Holding for long periods of time is a good strategy in terms of taxation, too. If you keep your Bitcoin for more than 12 months, you can minimize your tax burden as you’ll enjoy a more favorable long-term capital gains tax rate. Momentum trading isn’t a good idea unless you apply rigorous risk management while navigating the market’s inherent volatility.
Prepare Your Exist Strategy to Navigate the Volatile Market Effectively
As mentioned earlier, cryptocurrency bull markets are characterized by optimism, so it’s not uncommon to see more significant trading volumes, higher valuations, and more investors. Price corrections that occur during a year typically reach a 10% decline. According to the experts, you should plan in advance – that is, prepare your exit strategy to minimize potential losses and protect your assets. By timing your exit, you can leverage favorable market conditions and secure optimal returns, so it doesn’t matter if you blow the chance to make extra money.
Conclusion
Trading during a cryptocurrency bull market requires prioritizing efforts, effectively allocating resources, and focusing energy. Attention must be paid to the fact that every bull market is different, so the recent price increases are different from previous bull runs. Stablecoin growth is more critical than inflows from spot ETFs, so it’s necessary to watch out for the former. A crypto bull market is an excellent opportunity to make some money, but trading demands consistency, discipline, focus, and ideas that fit the conditions of the market.