Crypto Trader Used This Strategy To Avoid 2021 Bitcoin Crash 'From $58K To $28K In A Matter Of Weeks'

Pseudonymous cryptocurrency trader CryptoJelle, shared a simple yet effective strategy for determining the peak of a bull market.  

What Happened: In a comprehensive X (formerly Twitter) thread on Tuesday, CryptoJelle laid out the concept of market structure analysis.

This approach entails a deep examination of market highs and lows to identify overarching trends and anticipate potential endings.

According to CryptoJelle, a bearish market exhibits a consistent pattern of lower highs and lower lows. A deviation from this pattern signifies the beginning of a bullish trend. Conversely, a bullish trend is characterized by a series of higher highs and higher lows. The appearance of a lower low within this sequence serves as a warning signal that the trend might be shifting.

This technique played a crucial role for him in avoiding substantial losses in 2021″before Bitcoin BTC/USD crashed from 58k to 28k in a matter of weeks.”

Also Read: Bitcoin Breaks $70,000: 10x Research Predicts ‘Critical’ Week For The ‘Next 15,000-Point Move’

The expert’s strategy is particularly valuable for those engaging in long-term market analysis. He emphasizes that the higher the timeframe being observed, the more significant a break in structure typically becomes.

“Don’t dump your long-term bags because the 5-minute chart broke structure,” he advises.

While this method may not precisely pinpoint the exact market peak, it serves as a protective measure for investors to preserve most of their profits. As long as the market continues to demonstrate higher highs and higher lows, CryptoJelle remains optimistic about the potential for further upside.

What’s Next: In addition to these insights from expert traders, crypto enthusiasts can explore the best crypto day trading strategies and a list of the best altcoins for portfolio diversification.

Join industry titans like Tim Draper and Jan Van Eck at Benzinga’s Future of Digital Assets conference on Nov. 19.

Read Next: Bitcoin Dip ‘100% Predictable,’ Could Trade Below $60K Before ‘Meaningful Rally Attempt,’ 10x Research Says

Image created using artificial intelligence with Midjourney.