Here are some important things to consider before going long Bitcoin in the current market situation.
Currently, Bitcoin is around $66,000,
but it could be in a historically oversold zone, $60,000 could be the low point,
and we should also consider the possibility that the low point could be in the mid-to-high $50,000 range.
1) The correction is now in its second week.
Typically, corrections last about two months.
2) Bitcoin's solo uptrend takes time.
Even if the short-term market is in this range, Bitcoin's solo uptrend
based on weekly charts, it seems it will take at least another month for Bitcoin to turn into an uptrend on its own.
3) The greater the fluctuation, the greater the eventual volatility.
Even if Bitcoin hits $60,000 and rebounds significantly to $72,000,
currently, the price is dragging and moving unfavorably.
Such periods often end in significant fluctuations.
4) The stop-loss line is unclear right now.
Even if you go long here, the stop-loss line is virtually impossible to determine.
You should go long even if it hits 64,000, go long even if it hits 62,000, go long even if it hits 60,000, and even if it hits the $50,000 range, you should still go long.
Avoid short-term stop-loss situations where your seed is split at the bottom.
After a month or two, it could be a historic low.
5) The safest approach is "Wait + Leverage Management."
While it's true to buy when the market is down,
you should assume that a trend reversal takes time.
Even if you do buy, you should only hold a position large enough to sustain the price until it falls.
If you heavily leverage in the mid-60,000s and then let it sag,
and the price falls to the low 60,000s or high 50,000s, you may not be able to buy more,
or you may become psychologically unable to hold on.
Of course, I don't think it's very likely that the market will immediately break 60,000 and then decline, but the market always requires risk management, considering the worst-case scenario.
It's not too late to increase leverage when volatility decreases, a potential trend reversal appears likely, and a clear stop-loss line is established.
Even then, you can still make a significant profit.
Impulsive or unplanned trading in the current market can be risky.
Please don't be impatient and consider carefully.
